The Nigerian foreign exchange market recorded a significant decline in weekly dollar inflows, plunging by 76.5% to $1.04 billion, as reported figures highlighted a sharp reduction in alternative sources of foreign exchange.
The prior week had seen an inflow of $4.42 billion, but the latest data shows a dramatic drop, even as the naira held steady in value despite a reduction in external reserves. Analysts say the Central Bank of Nigeria (CBN) ramped up its intervention strategy, injecting $170 million into the market in an attempt to stabilise supply and sustain liquidity.
Despite these efforts, the nation’s external reserves experienced a marginal weekly dip, reflecting mounting pressure on Nigeria’s dollar buffers. Coronation Merchant Bank’s research division confirmed the plunge in inflows through the Investors’ and Exporters’ (I&E) FX window, which dropped from $4.42 billion to just $1.04 billion week-on-week.
According to the report, exporters were responsible for 18.33% of the total FX inflows, while the apex bank accounted for 19.71% of the total dollar volume within the week under review. Foreign portfolio investors (FPIs) remained the most dominant contributors, supplying 32.02% of the total foreign exchange, while non-bank corporate entities added 29.49%. Other miscellaneous sources collectively accounted for only 0.45%.
Despite the sharp drop in inflows, Nigeria’s foreign exchange reserves only slipped slightly by 0.24% over the week, closing at $38.46 billion. The naira continued to trade within a stable range against major currencies, although it shed 0.14% against the Chinese yuan (CNY), settling at N220.26 per CNY by market close on Friday.
In the global commodities market, crude oil prices rallied nearly 3% at the start of the week, despite the Organization of the Petroleum Exporting Countries and its allies (OPEC+) maintaining their planned output levels. The surge was largely driven by wildfire disruptions in Canada’s key oil-producing regions and renewed geopolitical uncertainty stemming from the United States.
Brent crude futures spiked by $1.85 (2.95%) to settle at $64.63 per barrel, while U.S. benchmark West Texas Intermediate (WTI) climbed $1.73 (2.85%) to reach $62.52 per barrel.
Meanwhile, gold prices surged more than 2% to hit a three-week high, boosted by a depreciating U.S. dollar and escalating global tensions. Spot gold gained 2.5%, peaking at $3,372.13 per ounce—the highest level since May 8—fuelled by tight physical markets, resilient economic data, and strong seasonal buying trends. Analysts suggest any forthcoming slowdown in demand is unlikely to derail expected output increases anticipated in August’s production adjustment talks.
