…the CBN’s gross foreign exchange reserves rose slightly by 0.58% to US$45.50 billion, adding US$264.56 million at the start of the year.
TUE JAN 06 2026-theGBJournal| The naira strengthened against the U.S dollar on Monday, a day in which dollar retreated against major currencies including the Swiss franc and the euro.
The naira appreciated by 0.3% to N1,429.85/US$1 from N1,430.85/US$ after a mixed performance across FX markets at the beginning of 2026.
The improvement was largely supported by sustained CBN supply into the foreign exchange market. In contrast, the parallel market rate weakened to N1,490/US$1 (-1.01% w/w), reflecting persistent FX demand pressures outside the official window.
As at close of official trade last Friday, FX inflow into the NAFEM window declined by 20.67% w/w to US$593.70 million from US$748.40 million in the prior week.
Analysts at Coronation Research believe the slowdown reflects softer market activity at the start of the year, as well as reduced participation from offshore investors.
Local sources remained the dominant contributors (accounting for 82.95% of the total FX inflow), These were led by Individuals (US$165.1 million), followed by the Central Bank of Nigeria (CBN) (US$128.00 million) and exporters/importers (US$115.6m).
On the external front, FX inflow slowed further (contributing just 17.05% of the total FX inflow), Notably, both foreign direct investments (FDIs) and foreign portfolio investments (FPIs) weakened sharply on a weekly basis.
FPIs declined by 72.91% w/w to US$46.00 million, from US$169.8 million, in the previous week, while FDIs fell 81.87% to US$7.00 million from US$38.60 million previously.
Meanwhile, the CBN’s gross foreign exchange reserves rose slightly by 0.58% to
US$45.50 billion, adding US$264.56 million at the start of the year.
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