Naira Appreciates to N1,465 as FX Reserves Rise to $42.696bn
The naira appreciated against the US dollar at the Nigerian Foreign Exchange Market (NFEM) even after an update showed there was a sharp weekly decline in FX inflows.
FX inflows in the official market fell by about 33% week on week to $1.1 billion, an update from Coronation Merchant Bank Limited revealed.
The decline in US dollar volume provides a partial explanation for the exchange rate fluctuation at the official currency market last week, analysts told MarketForces Africa, maintaining a positive outlook on the spot rate.
Updated FX data from the Central Bank of Nigeria (CBN) on Monday revealed that the naira strengthened by 0.69% to close at ₦1,465.29 per greenback.
Reflecting that there was sufficient foreign currency flows at the official window, the naira reached an intraday high of N1470, which translates to a sharp recovery when compared with N1482/$ quote on Friday.
The CBN Sold $70 million to banks as part of its FX intervention to keep dollar supply strong and achieve a stable exchange rate. In the parallel market, the naira depreciated by 1.07% to close at ₦1,500/$, according to a channel check conducted in Lagos and Abuja.
In spite of fluctuation in oil price, Nigeria’s external reserves surged to $42.696 billion last week, and market anticipates additional inflows to lift the balance this week.
Adding to the bearish tone, the IEA projected a growing supply surplus in 2026. Meanwhile, the U.S. Energy Information Administration (EIA) reported a 3.5 million barrel rise in crude inventories last week to 423.8 million barrels, far exceeding expectations of a modest 288,000 barrel build.
The larger-than-expected build in inventories was primarily due to reduced refinery runs, as several plants entered seasonal maintenance cycles, leading to lower crude processing volumes.
Additionally, heightened U.S.–China trade tensions raised concerns about slower global growth and weaker energy demand. Notably, U.S. crude production climbed to 13.64 mn barrels per day – the highest on record, underscoring ample supply conditions that continue to limit price recovery. Oil Stocks Deliver Tiny, Negative Return in Nearly 10 Months
