Naira strengthens as interbank FX turnover surges 266%

The Nigerian naira has shown signs of strengthening at the official Nigerian Foreign Exchange Market (NFEM), reaching approximately ₦1,349 to ₦1,350 per US dollar. This appreciation follows a significant surge in interbank foreign exchange turnover, which rose to $437.53 million, a 266% increase from the previous Friday.

Total FX inflows into the NFEM window increased to $1.77 billion, up from $830 million the preceding week. Foreign Portfolio Investors (FPIs) were the largest contributors to these inflows at 33.71%, while domestic sources, including exporters and non-bank corporates, accounted for 63.44%. The Central Bank of Nigeria (CBN) also contributed $252.1 million to enhance liquidity.

Nigeria’s gross external reserves have climbed to approximately $52.26 billion, marking a 17-year high. In the parallel market, the naira has remained relatively stable, with recent rates hovering around ₦1,405 for buying and ₦1,415 for selling per US dollar. Analysts attribute the market stability to increased liquidity, CBN interventions, and improved investor confidence following recent economic reforms.