The naira closed relatively stable against the US dollar on Thursday, reflecting balanced foreign exchange (FX) flows at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The local currency gained 30 kobo to settle at ₦1,488.26 per dollar, compared with ₦1,488.56 recorded the previous day. According to trading data, the spot rate reached an intraday high of ₦1,491, marking an appreciation from ₦1,498 quoted earlier in the week.
Analysts noted that the limited movement in the spot rate highlights a stable FX environment, supported by the Central Bank of Nigeria’s oversight on dollar liquidity and steady export inflows channeled through the official market window.
Parallel market activity also reflected optimism, with the naira strengthening by 0.29% to close at ₦1,514 per dollar. This resilience is being attributed to CBN’s sustained interventions, rising capital inflows, and an uptick in external reserves.
Foreign reserves inched up to $42.202 billion on Wednesday from $42.169 billion, buoyed by oil receipts, remittances, and investment inflows.
Meanwhile, foreign portfolio investors (FPIs) increased their activity on the Nigerian Exchange (NGX) in August, with inflows rising by 17.7% to ₦171.81 billion ($112.18 million) compared to July’s ₦145.95 billion ($95.17 million). FPIs accounted for 18.91% of total market turnover of ₦908.38 billion, while domestic participation fell by 55.9% to ₦736.57 billion.
The decline in local participation was largely attributed to the absence of large institutional block trades that had previously boosted July’s volumes.
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