Copyright bizwatchnigeria
The Nigerian naira appreciated to ₦1,452 per U.S. dollar at the Nigerian Foreign Exchange Market (NFEM), as increased inflows from foreign portfolio investors strengthened the supply side of the currency market. According to the latest data from the Central Bank of Nigeria (CBN), the naira closed stronger after reaching an intraday high of ₦1,457 against the greenback. Market analysts attributed the appreciation to improved dollar supply and reduced demand pressure. The lowest intraday rate recorded during trading settled at ₦1,450/$1, reflecting relative stability across market transactions. The improved liquidity was driven primarily by inflows from foreign investors, exporters, non-bank corporates, and individuals. In its market update, Coronation Merchant Bank Limited reported that total inflows through the NFEM climbed to $1.37 billion last week, up 25% from $1.10 billion recorded in the preceding week. Data from Coronation Research showed that foreign portfolio investors (FPIs) accounted for the largest share of inflows at 33.52% ($460.01 million), followed by exporters (14.92%), non-bank corporates (10.76%), the CBN (6.63%), and other sources (28.58%). The bank projected that the official rate is likely to remain below ₦1,500/$, supported by sustained FX liquidity and improved investor confidence. Last week, the naira appreciated by 1.19% week-on-week, gaining ₦17.39 to close at ₦1,457.96/$1 at the official window. Meanwhile, the global oil market experienced significant price gains, with Brent crude rising by more than 7% for the week. The rally was largely driven by U.S. sanctions on Russia’s top oil producers, Rosneft and Lukoil, which together contribute around 5% of global oil output. Additionally, market optimism improved following reports that U.S. President Donald Trump is set to meet Chinese President Xi Jinping soon, easing trade tensions and boosting investor sentiment.
