SAT FEB 01 2025-theGBJournal| The naira strengthened significantly this week against major currencies, advancing by 3.8% w/w to N1,474.78/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The gains were driven by inflows from Foreign Portfolio Investors (FPIs), substantial contributions from International Oil Companies (IOCs), and the CBN’s US$18.40 million intervention to authorised dealers.
On reserves, the country’s FX reserves declined for the fourth consecutive week by USD218.05 million w/w to USD39.77 billion (29 January).
In the forwards market, the naira rates increased across the 1-month (+3.8% to N1,533.09/USD), 3-month (+3.9% to N1,605.02/USD), and 6-month (+4.3% to N1,705.97/USD), and 1-year (+2.6% to N1,912.21/USD) contracts.
The renewed interest of Foreign Portfolio Investors (FPIs) in the FX market—driven by improved market confidence, a more efficient FX framework, and strengthening macroeconomic conditions—alongside the CBN’s sustained market interventions, is expected to support naira stability in the short term.
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