SAT SEPT 13 2025-theGBJournal| Nigerian naira drifted higher on Friday, buoyed by a US$29.10 million intervention by the Central Bank of Nigeria (CBN), and improving domestic inflows.
Anticipated capital inflows should benefit from the expected Fed rate cut and broader easing in global yields, which could bolster investor appetite for naira-denominated assets.
At the same time, stronger non-oil export receipts and reduced incentives for speculative positioning should reinforce the positive momentum, and suggest a more balanced FX market outlook.
The naira rose 0.1% w/w to N1,519.00/US$ at the official FX market, the Nigerian Autonomous Foreign Exchange Market (NAFEM).
In the forwards market, the naira rates equally strenghtened across the 1-month (+1.8% to N1,533.03/US$), 3-month (+2.6% to N1,586.34/US$), 6-month (+3.8% to N1,663.17/US$) and 1-year (+5.6% to N1,814.93/US$) contracts.
Meanwhile, gross FX reserves increased for the tenth consecutive week, growing by US$87.11 million w/w to US$41.66 billion (September 11).
In the near term, analysts at Cordros say the naira ”is expected to remain stable, underpinned by resilient FX market liquidity and improving domestic inflows.”
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