The naira depreciated against the US dollar, falling by three basis points to close at N1,537.03 in the official market. This decline occurred as the Central Bank of Nigeria (CBN) scaled back its aggressive foreign exchange (FX) interventions.
Unlike the robust FX auctions observed in late 2024, the current market has experienced diminished supply to offset demand pressures. Despite this, Nigeria’s external reserves rose to $40.92 billion as of Monday.
Data reveals a sharp reduction in inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM). Last week’s inflows amounted to $418.90 million, marking a more than 40% drop from the previous week’s $698.6 million.
The CBN contributed 20.05% of total inflows, while foreign portfolio investors (FPIs) accounted for 13.28%, supported by a N500 billion OMO bill auction. Non-bank corporates made up 35.06% of the total supply, exporters contributed 28.51%, and other sources provided 3.10%.
In the parallel market, the exchange rate remained relatively stable following the opening of a temporary window allowing Bureau de Change operators to purchase $25,000 from banks at the official rate. On Tuesday, the exchange rate closed at N1,640 per dollar, unchanged from the week’s opening rate.
Meanwhile, oil prices moved upward in the global commodity market. Brent Crude was priced at $76.77 per barrel, while West Texas Intermediate (WTI) traded at $73.92 per barrel.
