Robust FX Inflows Will Keep Naira Stable in Near Term, Analysts Say

By

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.

Forex News

FX turnover surges 146% to $5.05bn as spot market drives weekly activity
ABOKI FOREX
Top 10 stockbrokers dominate NGX trading with 59.26% of market value
ABOKI FOREX
What a container home costs in Nigeria in 2026
ABOKI FOREX
Dangote to buy ships for cement exports after failing to secure vessels
ABOKI FOREX
Xiaomi unveils Redmi 17 with 7,500mAh battery, 50MP camera and 120Hz display
ABOKI FOREX
Heirs Holdings opens 2026 graduate trainee programme, requirements and deadline
ABOKI FOREX
Dangote raises petrol price to N1,200 per litre, second increase in a week
ABOKI FOREX
NNPCL raises petrol price to N1,270 per litre, Dangote adjusts to N1,200
ABOKI FOREX
WhatsApp builds payments expansion groundwork, Nigeria may benefit eventually
ABOKI FOREX
Japan hikes residency extension fees by up to 12-fold, permanent residency 20-fold
ABOKI FOREX