SAT SEPT 20 2025-theGBJournal| The naira rose this week, extending its rebound against the U.S dollar, as Nigeria’s FX reserves extended its surge for the eleventh consecutive week.
By close of official market trade Friday, the naira rose 2.2% w/w to N1,487.9/US$, supported by the robust US$150.00 million intervention by the CBN and sustained offshore inflows.
In the forwards market, the naira rates appreciated across the 1-month (+0.7% to N1,522.49/USD), 3-month (+0.7% to N1,575.50/USD), 6-month (+0.8% to N1,650.02/USD) and 1-year (+0.9% to N1,797.95/USD) contracts.
Analysts expects the naira to remain stable in the near term, underpinned by resilient FX market liquidity and improving domestic inflows.
Prospective portfolio inflows are likely to benefit from the dovish shift in global monetary policy and the accompanying decline in treasury yields, which could enhance 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.
Meanwhile, gross FX reserves increased for the eleventh consecutive week, growing by US$291.41 million w/w to US$41.95 billion (September 18).
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