Naira Holds Steady Amid Falling Forex Inflows as External Reserves Rise
Written by SpringnewsNG Media Limited August 6,2025
August 6, 2025 – The Naira Holds Steady Amid Falling Forex Inflows as External Reserves Risehttp://Naira Holds Steady Amid Falling Forex Inflows as External Reserves Riseover the past two weeks.
At the Nigerian Foreign Exchange Market (NFEM) on Monday, the naira appreciated marginally by 0.1 percent, trading at ₦1,531.95 per dollar, up from ₦1,533.74 recorded on Friday, August 1, 2025, according to data from the Central Bank of Nigeria (CBN).
In the parallel market, also known as the black market, the local currency closed flat at ₦1,560 per dollar, traders confirmed. This followed last week’s moderate depreciation from ₦1,530 to ₦1,560 per dollar due to increased demand pressure.
FX inflows fell to $791.10 million from $979.10 million the previous week, a report by Coronation Merchant Bank revealed. Foreign portfolio investors (FPIs) accounted for $60.90 million, representing 7.70% of total inflows, while other international sources contributed only 0.76%.
On the domestic front, non-bank corporates dominated inflows with $483.60 million (61.13%), nearly tripling their previous week’s share. Exporters and importers contributed $168.60 million (21.31%), while the CBN and individual inflows stood at $68.40 million (8.65%) and $3.50 million (0.44%), respectively.
The naira also saw a mild appreciation last week after the International Monetary Fund (IMF) raised its economic growth forecast for Nigeria. At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira gained 0.06% week-on-week, closing at ₦1,533.74 per dollar from ₦1,534.72, while the parallel market remained at ₦1,540 per dollar, keeping the street market premium at ₦6.26 or 0.41%.
Meanwhile, Nigeria’s gross external reserves rose for the fourth consecutive week, adding $726.80 million or 1.88% week-on-week to reach $39.36 billion as of Wednesday.
Analysts at Coronation Merchant Bank expect the FX market to trade within the ₦1,500–₦1,600 per dollar range, supported by sustained reserve growth and positive macroeconomic sentiment. However, limited inflows could cap further naira appreciation, leaving the market sensitive to investor activity.
