Market News
Naira strengthens as CBN confirms $600m monthly forex inflows - NIGERIAN TRIBUNE
The naira gained ground on Friday, August 29, closing at N1,531.57 per dollar in the Nigerian Foreign Exchange Market (NFEM), up from N1,535.47 per dollar the previous day. This represents an appreciation of N4.47 for the local currency.
Data from the Central Bank of Nigeria (CBN) showed that the exchange rate improvement also narrowed the gap between the official market and the parallel market to just N9 per dollar. At the parallel market, the naira remained stable at N1,540/$, the same level it closed on Thursday.
Market analysts attributed the naira’s steady performance to improved foreign exchange inflows into the economy, particularly from the diaspora community. The CBN has confirmed that monthly remittances have surged to $600 million, a 200 per cent increase from the $200 million recorded just two months ago.
CBN governor, Mr. Olayemi Cardoso, disclosed the figures at the Delta State–Brazil Business and Investment Roundtable in São Paulo, Brazil. He explained that reforms in remittance channels and a more competitive exchange rate are encouraging Nigerians abroad to use official channels instead of informal routes.
“Our exchange rate is becoming far more competitive,” Cardoso said. “Diasporans who once relied on alternative channels to remit funds no longer have to. From about $200 million monthly, we now see inflows of $600 million, and by next year, we expect at least $1 billion.”
Cardoso emphasised that rising diaspora remittances are diversifying Nigeria’s foreign exchange earnings base and reducing dependence on oil revenues, which historically account for the bulk of dollar inflows.
Analysts note that sustained remittance growth could strengthen the naira further if complemented by higher export earnings and foreign investment. The CBN believes the inflows are already boosting liquidity in the foreign exchange market and supporting exchange rate stability.
With the naira showing resilience, stakeholders are watching closely to see if the trend continues in the months ahead as reforms deepen and remittances expand.
