The naira appreciated against the U.S. dollar at the Central Bank of Nigeria’s (CBN) official foreign exchange window, as foreign currency demand pressures eased at the start of the trading week.
According to data from the Nigeria Foreign Exchange Market (NFEM), the CBN’s official spot rate surged to N1,600.4396 per dollar following a $270 million intervention in the forex market last week.
In the intraday spot FX market, transaction rates ranged between N1,595 and N1,605. Meanwhile, the parallel market witnessed a depreciation in the naira, with the exchange rate weakening to N1,635 per dollar from N1,620, amid uncertainties surrounding potential CBN dollar sales to Bureau De Change operators.
Despite the intervention, overall forex inflows into the market decreased last week, Coronation Research reported. Non-bank corporate entities remained key contributors on the supply end. The Nigerian Autonomous Foreign Exchange Market (NAFEM) recorded an inflow of $619 million, reflecting a 7.33% decline from the $668 million received the prior week.
This figure marked a 7.34% week-on-week decrease. The CBN contributed 18% of the total inflows, while Foreign Portfolio Investors (FPIs) accounted for 16.78%. Non-bank corporates made up 34.27%, exporters 28.17%, and other miscellaneous sources provided 2.78%.
 official foreign exchange window, as foreign currency...){kind=link}