Naira Keeps Gaining Streaks Amidst Rising Hot Money Inflows
The Nigerian naira has been on an upward trend for five days in a row in the official market due to the interplay of demand and supply favouring the local currency exchange rate.
The Nigerian economy recorded a sharp increase in hot money in the second quarter as foreign portfolio investors drove US dollar volume in the official window—following successive OMO bill auctions.
Data obtained from the Central Bank of Nigeria (CBN) showed that the Nigeria foreign exchange market rate (NFEM) for Thursday settled at N1525.82 per dollar, from N1526.15 the previous day.
Market participants consummated daily transactions in the forex market between an intraday low of N1524.5000 and an intraday high of N1527.5000 per US dollar request. Yesterday, the International Monetary Fund (IMF) lauded FX market reforms for aligning rates and restoring investor confidence.
The naira reform and the CBN FX interventions have strengthened investors’ confidence, helping to drive hot money into the Nigerian economy. In June, CBN relied on open market operations to manage liquidity: a series of OMO bill auctions that absorbed excess naira liquidity.
Flood of foreign investors’ dollar inflows via 8 OMO bill auctions aided the naira’s gaining streaks, according to analysts. The CBN floated eight OMO auctions in the second quarter of 2025, offering approximately N4.5 trillion across the standard tenors.
OMO bills sales throughout the quarter were about N7.12 trillion despite one no-sale auction being recorded. Elsewhere, oil prices dipped on Thursday as concerns about the reinstatement of U.S. tariffs raised demand uncertainties, especially ahead of a likely output increase from major producers.
Brent crude futures dropped 56 cents, or 0.81%, to $68.55 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 70 cents, or 1.04%, to $66.75 amid thin trading due to the Independence Day holiday.
Gold prices also fell, pressured by stronger-than-expected U.S. payroll data, which reduced the likelihood of an early Federal Reserve rate cut. Spot gold slid 0.9% to $3,328.63 per ounce after falling more than 1% earlier.
Thursday’s robust jobs report confirmed the economy’s ongoing strength, but the Fed is still likely to keep rates unchanged for now. #Naira Keeps Gaining Streaks Amidst Rising Hot Money Inflows Zenith Bank Retains Position as No.1 Bank in Nigeria by Tier-1 Capital
