SAT AUG 23 2025-theGBJournal| The naira rose by close of official trade Friday following the Central Bank of Bank Nigeria strong intervention and sustained inflows from foreign portfolio investors.
The currency rose by 1.1% w/w to N1,520.00/US$, supported by the Central Bank of Nigeria’s (CBN) intervention of c. US$50.00 million during the week, and increased inflows from FPIs following the OMO auction.
In the forwards market, naira rates depreciated across the 1-month (-2bps to N1,577.40/US$), 3-month (-0.1% to N1,653.75/US$), 6-month (-1bp to N1,763.94/US$) and 1-year (-1bp to N1,975.62/US$) contracts.
Meanwhile, gross FX reserves increased to the highest level since Dec 2021, growing by USD353.47 million w/w to USD41.08 billion (21 August).
Analysts expect the naira to remain stable, underpinned by robust FX liquidity and an efficient FX market.
”Specifically, we expect sustained inflows from foreign portfolio investors (FPIs) due to existing carry trade opportunities and stronger market confidence,” says Cordros Research analysts.
Additionally, improving non-oil exports, as well as limited incentives for naira speculation, are expected to reinforce steady inflows from domestic sources.
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