FRI FEB 06 2026-theGBJournal| The naira held near two-week highs on Friday, drawing on the relative stability amid cautious FX demand management.
The currency rose at the NAFEM window by 1.4% w/w to N1,375.00/US$. Notably, the level of appreciation was strong during the week, resulting in the Central Bank of Nigeria (CBN) purchasing approximately US$72.00 million from the market.
In the forwards market, the naira rates appreciated across the 1-month (+1.6% to N1,391.15/USD), 3-month (+1.4% to N1,433.84/US$), 6-month (+1.6% to N1,493.72/USD) and 1-year (+0.9% to N1,598.67/US$) contracts.
Meanwhile, the gross FX reserves increased this week by USD736.69 million w/w to US$46.91 billion (February 5).
Foreign investor appetite for Nigeria’s capital market is expected to remain robust, underpinned by a supportive macroeconomic backdrop, enhanced market efficiency, and elevated naira yields.
These factors should continue to underpin capital inflows and FX liquidity, while rising external reserves provide the CBN with adequate buffers to stabilise the naira during periods of volatility. Consequently, we expect the naira to remain firm in the near term.
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