SAT DEC 13 2025-theGBJournal| The naira depreciated this week by 0.1% w/w to N1,456.00/US$1, as demand pressures outweighed the robust supply from the Central Bank of Nigeria (CBN) (US$1250.00 million) and inflow from offshore players looking to participate at the OMO PMA.
In the forwards market, the naira rates depreciated across the 1-month (-0.4% to N1,485.97/US$1), 3-month (-0.5% to N1,536.28/US$1), and 6-month (-0.9% to N1,599.70/US$1) contracts, while it appreciated on the 1-year (+0.3% to N1,726.89/US$1) contract.
Meanwhile, gross FX reserves increased for the twenty fifth consecutive week, growing by a strong USD396.84 million w/w to USD45.44 billion (December 11).
The global environment remains supportive of net capital inflows amid ongoing global monetary easing and reduced geopolitical tensions, while a positive current account position and rising external reserves continue to underpin investor confidence.
Furthermore, the pace of growth in goods import demand remains relatively slow, helping to contain demand pressures. Therefore, we expect the naira to remain broadly stable over the near to medium term, driven by strong net FX liquidity.
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