Naira Appreciates as CBN Accounts for 40% of Dollar Inflows

The naira on Monday appreciated in the official foreign exchange (FX) market as the Central Bank of Nigeria (CBN) accounted for the highest dollar inflows of 39.85 percent in the Nigerian Foreign Exchange Market (NFEM).

The NFEM window recorded an inflow of $1.19bn last week compared to $1.10bn recorded in the prior week, according to data from Coronation Merchant Bank.

The CBN accounted for 39.85 percent of the total inflow; foreign portfolio investments (FPIs), 18.09 percent; non-bank corporates, 23.81 percent; exporters, 15.67 percent; while other sources accounted for 2.58 percent. Last week, the CBN accounted for 14.29 of the total FX inflows.

Authorised currency dealers quoted the dollar at the highest rate of N1,537 on Monday, slightly stronger than N1,540 quoted on Friday at the NFEM window. The FX market recorded the lowest rate of N1,527 per dollar on Monday, which was also stronger than N1,535 on Friday.

The naira also appreciated at the parallel market, popularly called black market, closing at the rate between N1,570 and N1,575 compared to N1,580 traded last week.

Against other currencies, the naira appreciated by 0.7 percent to close at N2,020 per pound, marking a N15 gain from N2,035 per pound on Thursday on the black market.

The naira gained N10 against the euro as it closed at N1, 700 on Monday as against N1,710 per euro on Thursday. The local currency traded steady against the Canadian dollar and Chinese yuan at N1,150 and N215, respectively on Thursday last week.

At the parallel market last week, the naira depreciated by 0.32 percent, closing at N1,590.00/$1 on Friday, March, 21, 2025, according to a report by the Coronation.

According to data from CBN, the foreign reserves decreased by 0.06 percent week/week to close at $38.35bn as of March 21, 2025. Turning to the Chinese Yuan (CNY), according to data from the CBN, the naira lost -1.12 percent to close at N212.01CNY/N.

SOURCE: Business Day