SAT AUG 02 2025-theGBJournal| The Nigerian naira ticked higher than expected by end of official trade on Friday, closing 1.2% w/w to N1,520.00/US$1.
The gain was supported by supply from foreign portfolio investors (FPIs) looking to participate in the OMO PMA.
In the forwards market, the naira rates appreciated across the 1-month (+0.6% to N1,567.61/USD), 3-month (+1.2% to N1,627.53/USD), 6-month (+2.5% to N1,714.93/USD) and 1-year (+4.4% to N1,884.07/USD) contracts.
The gross FX reserves increased for the fourth consecutive week, growing week by USD593.75 million w/w to USD39.36 billion (July 30).
Meanwhile, data from FMDQ, shows that total inflows into the Nigerian Foreign Exchange Market (NFEM) declined by 20.9% m/m to USD3.83 billion in July (June: USD4.84 billion), primarily driven by declines in inflows from both foreign (45.8% of total inflows) and local sources (54.2% of total inflows).
Specifically, inflows from foreign sources dropped by 35.6% m/m to USD1.75 billion (June: USD2.73 billion) following declines in inflows across FDIs (-79.8% m/m), other corporates (-60.1% m/m) and FPIs (-34.8% m/m) segments.
At the same time, inflows from local sources marginally declined by 1.9% m/m to USD2.07 billion (June: USD2.11 billion) primarily due to the decline in the Exporters/Importers (-30.1% m/m) segment.
Inflows from individuals (+117.5% m/m), CBN (+77.8% m/m), and non-bank corporates (+5.4% m/m) segments recorded higher accretions.
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