Naira Strengthens as Data Shows FX Inflow Jumps by 48%
The naira exchange rate improved at the Nigeria Foreign Exchange Market (NFEM) as data showed that there was approximately a 48% week-on-week increase in FX inflows into the official window.
The naira has continued to record gains against the US dollar at the FMDQ platform and CBN window in the absence of forex shortfall in the currency market.
The naira settled at N1584 at the CBN NFEM window and N1582 at the FMDQ platform as market liquidity remained sufficient to meet aggregate demand in the currency market.
The Nigerian Autonomous Foreign Exchange Market (NAFEM) recorded an inflow of US$914 million compared to US$619 million in the previous week, according to Coronation Research.
There was an increase of 47.66% week on week, driven by FX supply from CBN, exporters, foreign portfolio investors (FPIs), and non-bank corporates. The CBN accounted for 25.41% of the total inflow, FPIs 12.53%, non-bank corporates 28.85%, and exporters 20.79%, while other sources accounted for 12.42%.
Chinese Yuan: The naira gained 0.02% against the Chinese yuan (CNY) to close at N221.77 amidst rising external reserves. In the foreign exchange market, the naira gained 0.46% last week against the US dollar in the official spot market, closing at N1,598.72/US$1, marking a rebound after three weeks of consistent declines. #Naira Strengthens as Data Shows FX Inflow Jumps by 48%
