The Nigerian naira appreciated by over N5 against the US dollar in the official foreign exchange market, bolstered by the Central Bank of Nigeria’s (CBN) recent liquidity interventions. According to CBN data, the naira was quoted at N1,526.0940 per dollar on Monday at the official window, up from N1,531.5703 the previous day.
Forex traders noted that the naira reached an intraday high of N1,531 due to limited demand for dollars from corporate clients. The supply side remained robust, driven by foreign portfolio inflows and CBN’s dollar sales to banks. Last week, the CBN injected $170 million into the market to stabilize the naira, countering a slight depreciation trend at the official window. Offshore investors also contributed to dollar inflows through open market operations.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira gained 0.23%, or N3.47, closing at N1,531.57 per dollar. The parallel market saw a stronger appreciation of 0.97%, with the naira settling at N1,540.00 per dollar. Total forex inflows into the NAFEM window reached $706.70 million, down from $751.70 million the previous week, according to Coronation Merchant Bank. Non-bank corporates led inflows with $250.00 million, followed by foreign portfolio investments ($198.30 million) and exporters ($145.10 million). The CBN contributed $88.50 million to the inflows.
Nigeria’s external reserves rose to $41.27 billion by the end of August, the highest since 2021. In global markets, Brent Crude climbed 1% to $68.15 per barrel amid concerns over supply disruptions due to Russia-Ukraine tensions, while a weaker dollar supported commodity prices. Gold hit a four-month high at $3,477.56 per ounce, and silver surpassed $40 for the first time since 2011.
