MON JUNE 30 2025-theGBJournal| The naira flourished on Monday against the U.S dollar as market basked in the inflows last week, from foreign portfolio investors (FPI).
The official FX rate strengthened by 1.0% to N1,526/US$ by close of official market trade on Monday.
Substantial inflows from foreign portfolio investors (FPI) last week, non-bank corporates and exporters, which pushed the Naira to a high of N1,536.08/US$1 during the week.
Similarly, in the parallel market, the Naira edged higher against the US Dollar by 1.90%, closing at N1,575/US$1.
For the FX inflows during week (US$1.03bn), FPIs with 36.98% made the highest contribution for the sixth consecutive week, signaling sustained foreign investors’ interest in the Nigerian fixed income market.
The Non-bank corporates followed closely with 27.56%, while the Exporters contributed 22.39%, and others contributed 13.06%. There was also a CBN inflow of US$96.3mn.
Analysts at Cordros Research say they expect the Naira to remain relatively stable in the near term, supported by continued foreign portfolio inflows and improved FX supply from non-bank corporates and exporters.
”However, the moderate decline in gross external reserves and the relatively modest FX inflow from the CBN suggest that the market may remain sensitive to demand side pressures.”
Cordros adds that there is also some concern on oil prices and production numbers and their effect of FX inflow from oil sales.
”Sustained investor interest in fixed income assets, if maintained could help anchor sentiment, though further stability will hinge on the pace of reserve accretion and the Central Bank’s ongoing intervention strategy.”
The naira flourished on Monday against the U.S dollar as market basked in the inflows last week, from foreign portfolio investors (FPI).
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