SAT AUG 30 2025-theGBJournal|The naira fell this week by 0.9% w/w to N1,534.00/USD as demand pressures undermined the supply from foreign portfolio investors (FPIs) looking to participate in the OMO PMA.
In between, the Central Bank of Nigeria sold US$170.00 million to banks to shore the market but the currency failed to positively respond.
In the forwards market, the naira rates appreciated across the 1-month (+0.3% to N1,572.96/US$), 3-month (+0.6% to N1,644.11/US$), 6-month (+1.0% to N1,745.84/US$) and 1-year (+1.4% to N1,948.07/US$) contracts.
Meanwhile, gross FX reserves increased for the eight consecutive week, growing by USD161.06 million w/w to US$41.27 billion (August 29).
The naira is expected 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.
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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