The Nigerian naira has continued to show remarkable stability in the foreign exchange (FX) market, despite a noticeable decline in FX inflows over the last two weeks.
At the Nigerian Foreign Exchange Market (NFEM) on Monday, the naira saw a slight uptick of 0.1 percent, trading at ₦1,531.95/$. This marks a minor gain of ₦1.79 from ₦1,533.74/$ recorded on Friday, August 1, 2025, according to data from the Central Bank of Nigeria (CBN).
In the parallel market popularly known as the black market, the naira remained flat at ₦1,560/$, based on figures from street-level traders. Last week, however, the local currency faced slight demand pressure, slipping from ₦1,530/$ to its current level.
Despite the naira’s resilience, total FX inflows dipped to $791.10 million, down from $979.10 million the week prior, according to a report by Coronation Merchant Bank.
Foreign Portfolio Investors (FPIs) led international participation, contributing $60.90 million (7.70% of total inflows). Other international sources accounted for just 0.76%, reflecting a cautious global investor mood.
Domestically, non-bank corporates surged ahead, almost tripling their contributions to $483.60 million (61.13%). Exporters and importers followed closely, with their share nearly doubling to $168.60 million (21.31%). Inflows from the CBN and individuals were recorded at $68.40 million (8.65%) and $3.50 million (0.44%), respectively.
The report also noted that the naira posted modest gains last week, buoyed by the International Monetary Fund’s (IMF) upward revision of Nigeria’s economic growth forecast. At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the currency appreciated by 0.06% week-on-week, closing at ₦1,533.74/$, up from ₦1,534.72/$.
In contrast, the parallel market rate remained steady at ₦1,540/$, with the street market premium standing at ₦6.26, or just 0.41% above the official rate.
Adding to the positive sentiment, Nigeria’s gross external reserves climbed for the fourth consecutive week, increasing by $726.80 million or 1.88% week-on-week. As of Wednesday, reserves stood at $39.36 billion.
Analysts at Coronation Merchant Bank forecast that the FX market will likely remain within the ₦1,500–₦1,600 band, backed by consistent reserve growth and improved macroeconomic outlooks.
“Subdued FX inflows may cap further naira gains, keeping market dynamics highly responsive to shifts in investor confidence and participation,” the report stated.
