SAT AUG 16 2025-theGBJournal| The naira depreciated by 0.1% w/w to N1,536.53/US$, despite improved supply, as the CBN sold c. US$166.00 million to the market.
In the forwards market, the naira rates depreciated across the 1-month (-0.1% to N1,577.15/USD), 3-month (-0.3% to N1,652.88/US$), 6-month (-0.5% to N1,764.11/US$) and 1-year (-0.8% to N1,975.38/US$) contracts.
Meanwhile, gross FX reserves increased for the sixth straight week, rising by US$431.86 million w/w to US$40.72 billion (13 August).
Meanwhile, 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.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
