Naira Rises to N1,349/$ as Interbank FX Turnover Spikes 266%
The naira appreciated to N1,349 to the US dollar at the Nigerian foreign exchange market (NFEM) as the local currency extended its rally on Monday.
The local currency exchange rate appreciated at the official window to N1349.5372 per greenback from N1357.6088 at the beginning of the trading session.
The spot rate hovered between N1347 and N1361 as forex market liquidity surged sharply, reducing pressure on the dollar from increased interbank FX market activity.
Official data obtained by MarketForces Africa showed a sharp increase in financial institutions’ activity at the NFEM window, with the market opening strongly and stable FX inflows.
Interbank FX turnover accelerated to $437.529 million, up by about 266% from $119.594 million recorded on Friday’s close. Reflecting increased activity by market makers, the number of deals in the interbank FX market increased to 178 from 137.
Last week, the naira appreciated by 0.59%, closing at N1,357.61/US$1. The parallel market held steady, with the exchange rate unchanged at N1,420.00/US$1, reflecting steady foreign exchange liquidity in the informal market segment.
Total FX inflows into the NFEM window increased significantly to US$1.77 billion from US$0.83 billion in the previous week, according to the research subsidiary of Coronation Group.
Domestic sources accounted for 63.44% of total inflows, driven primarily by Exporters (31.20%) and Non-Bank Corporates (17.67%), underscoring the growing contribution of autonomous market participants to FX supply.
Notably, the CBN injected US$252.1 million, representing 14.27% of total inflows, to enhance market liquidity. On the external side, Foreign Portfolio Investors (FPIs) remained the largest single source of FX, contributing 33.71% of aggregate inflows.
Due to successive FX inflows into the economy, Nigeria’s gross external reserves balance surged by 0.39% week-on-week to US$52.26 billion, up from US$52.06 billion in the prior week.
Analysts expect the naira to remain broadly stable in the near term, supported by improved FX liquidity conditions, sustained autonomous inflows, and a robust external reserves position Naira Approaches 2026 Estimated Fair Value as Rally Extends
