Nigeria’s foreign exchange forwards market advanced last week as traders continued to factor in the Central Bank of Nigeria’s (CBN) consistent FX interventions, reinforcing expectations of improved liquidity at the official window.
Analysts maintained a positive outlook for the local currency, pointing to sustained growth in the nation’s external reserves and the apex bank’s readiness to support market liquidity through regular dollar sales.
During the week, the CBN supplied authorised dealers with $186 million at rates below the prevailing official benchmark, a move aimed at strengthening supply levels and narrowing demand imbalances. This followed increased pressure in the early part of the week, with the official exchange rate briefly surpassing N1,462 per dollar during Monday’s trading.
Responding swiftly, the CBN sold $36.60 million on Tuesday to stabilise the market, easing volatility despite ongoing demand from importers and other FX users. Additional offshore inflows also helped moderate pressure on the naira.
By midweek, the currency began to recover, supported by stronger FX intervention, improved supply from non-bank corporates, and rising confidence driven by the steady growth of external reserves.
Nigeria’s gross external reserves rose for the nineteenth consecutive week, gaining approximately $600 million to stand at $44.606 billion. Analysts described the trend as a critical buffer for the apex bank’s FX management strategy.
This positive momentum spilled into the forwards segment, where rates strengthened across tenors as the market priced in continued dollar liquidity.
The one-month forward appreciated by 0.5% to N1,477.12, while the three-month contract advanced 0.9% to N1,525.58 per dollar. The six-month contract climbed 1.8% to N1,587.15, and the one-year agreement gained 3.4% to close at N1,711.17.
Cordros Capital analysts noted that the naira’s medium-term outlook remains stable, supported by rising reserves, a healthier current account position, and expectations of easier global monetary policy. These factors, they said, could bolster investor appetite and strengthen inflows into Nigeria’s FX market in the coming months.
