Naira Depreciates as Total FX Inflow Declines to $751.70m
The naira depreciated as total FX inflow at the Nigerian foreign exchange market declined to $751.70 million amidst Central Bank (CBN) intervention. According to data from the CBN, the official exchange rate depreciated to N1536.43 per dollar on Monday from N1535.03 from the previous close.
The spot FX rate reached an intraday high of N1537, reflecting heightened demand for foreign currency at the official window. Recall that the Naira weakened against the US Dollar in the forex market last week, depreciating by 0.16% week on week to close at N1,535.04/US$1, after hitting an intraweek low of N1,536.73/US$1.
In the parallel market, the currency recorded a steeper decline, losing 0.65% week on week to settle at N1,550.00/US$1 in the absence of supportive FX supply versus rising demand. During the week, the Central Bank of Nigeria (CBN) offered a spot rate of 25.99% on OMO securities with 124 days to maturity, higher than investors had expected.
Analysts said the steep spot rate suggests CBN is seeking to attract and keep offshore inflows for longer to sustain FX liquidity. The authority also sold $50 million to banks to push the supply side amidst a decline in FX inflows.
Total FX inflows settled at US$751.70 million for the week, lower than the US$787.50 million recorded in the previous week. Exporters emerged as the leading contributors, accounting for US$216.10 million of total inflows, according to Coronation Merchant Bank research unit.
Non-bank corporates boosted to FX inflow with US$203.90 million, while foreign portfolio investors (FPIs) contributed US$175.60 million. The CBN made available US$137.4 million, while inflows from individuals and other sources accounted for 0.50% and 1.87%, respectively.
Elsewhere, updated data showed that the nation’s gross external reserves increased to $41.106 billion at the close of the trading session on Friday.Barring any external shocks, analysts at Coronation said they expect the naira to remain broadly stable, trading within the current range, underpinned by sustained FX inflows and CBN support.
Brent crude ended the week higher by 2.08% week on week, closing at US$67.22 per barrel compared to US$65.85 in the prior week. This moderated its year-to-date loss to 9.94%, from 11.78% the previous week. Meanwhile, the 2025 average price stands at US$70.12, 12.19% lower than the 2024 average. Similarly, Bonny Light closed at US$69.32, maintaining a premium over Brent.
Despite earlier speculation of a peace deal, the conflict persisted as Russia carried out an airstrike near Ukraine’s EU border, while Ukraine struck a Russian refinery and the Unecha pumping station, a key link on the Druzhba pipeline to Europe.
The escalation heightened geopolitical risks, lifting market sentiment and reversing the losses recorded in the prior week. Meanwhile, the war continues as Ukraine’s drones strike on infrastructure that underpins Russian oil flows to Hungary and Slovakia, increasing geopolitical uncertainty.
The extent of disruption remains unclear at the moment but if the disruption is prolonged and this is act is seen as the start of an escalation in the conflict, then oil prices likely to close higher this week #Naira Depreciates as Total FX Inflow Declines to $751.70m Financial Stocks Fuel Intraday Rally on Nigerian Exchange
