Market News

The Naira on Tuesday maintained stability across foreign exchange (FX) markets as exporters account for the largest contribution of inflows into the market.

The local currency closed flat on Tuesday as the dollar was quoted at N1,583.73, marking a 0.3% loss compared to N1,579.40 quoted the previous day at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).

In the parallel market also known as the black market, the naira steadied at N1,610 per dollar.

The naira appreciated by 0.06% as the dollar was quoted at N1,5970.40 on Monday, marking a gain of N1.04 compared to N1,580.44 quoted on Friday at NFEM.

The NFEM window recorded an inflow of $3.38 billion compared to $4.29 billion in the previous week, according to a report by the research department of Coronation Merchant Bank Limited.

The total inflow decreased by 21.28% week-on-week, Exporters accounted for 75.54% CBN accounted for 2.98% of the total inflow, Foreign Portfolio Investors (FPIs) brought in 9.72%, non-bank corporates 9.61%, while other sources accounted for 2.15%.

The gross foreign reserves increased by 0.48% w/w to close at $38.56bn as of May 22, 2025.

For the Chinese Yuan, the Naira gained 0.81% against the Chinese Yuan (CNY), to close at N219.96CNY/N.

In the foreign exchange market last week, the Naira appreciated for the second consecutive week in a row, gaining 1.14% w/w against the US dollar in the official spot market, closing at N1,580.44/$1. The 1-month forward rate closed at N1,623.11/$1.

The 3-month forward contract rate closed at N1,682.77/$1. The 6-month forward contract closed at N1,770.17/$1. The 1-year forward rate closed at N1,938.74/$1. At the parallel market, Naira gained 0.43% against the dollar, closing at N1,620.00/$1 on Friday May 23, 2025, the report noted.

Recently, the CBN, in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), formally launched the Non-Resident Diaspora Bank Verification Number. The initiative is designed to strengthen financial ties between Nigeria and its diaspora community and boost foreign exchange inflows into the country.

Olayemi Cardoso, Governor of the CBN reaffirmed the Bank’s goal of attracting $1 billion in monthly diaspora remittances. He underscored the importance of adhering to the FX Code and regulatory frameworks as part of efforts to ensure market stability and build trust among stakeholders.