Robust FX Inflows Will Keep Naira Stable in Near Term, Analysts Say
By Aboki Forex —
The naira dipped slightly at the official market last week. But analysts at Coronation Merchant Bank say healthy autonomous foreign exchange and foreign portfolio inflows should keep the currency broadly stable in the short term.
In a report, the analysts noted that the Central Bank of Nigeria did not supply any FX for the sixth week running. However, autonomous sources kept the market liquid.
The naira depreciated by 0.48% week-on-week at the Nigerian Foreign Exchange Market window to close at N1,370.46 per dollar. That was down from N1,363.83 per dollar the previous week.
The local currency started the week on a positive note. It gained 0.56% to N1,356.27 per dollar before reversing those gains as FX supply weakened.
In the parallel market, the naira strengthened by 0.36% week-on-week to N1,400 per dollar from N1,405 per dollar. The parallel market premium narrowed to 2.16%, down from 3.02% a week earlier. That shows better price convergence across market segments.
Total FX inflows into the market hit $689 million during the week. That was a drop of 26.04% week-on-week. Exporters accounted for the largest share at 43.30% or $298.30 million. Foreign portfolio investors came next at 39.26% or $270.50 million. Non-bank corporates contributed 14.36% or $98.90 million. Other corporates accounted for 1.87% or $12.90 million. Other sources made up the remaining 1.21%.
The report stressed that there were no CBN FX inflows for the sixth week in a row. This shows the growing role of autonomous sources in supporting market liquidity.
On the external front, Nigeria's gross foreign exchange reserves rose by 1.05% week-on-week or $529.71 million to $51.04 billion as of June 18, 2026. That provides continued support for external buffers.
Looking ahead, the analysts expect the naira to remain broadly stable in the near term. They say robust autonomous FX inflows and portfolio inflows will underpin that stability.