The naira held its ground last week, defying a steep fall in foreign exchange inflows.
Meanwhile, traders watched closely as liquidity tightened, yet the currency stayed firm across key market segments.
Naira Weekly Gain
By Tuesday, it gained 0.12%, with the dollar quoted at ₦1,463.45, up slightly from Monday.
Similarly, in the parallel market, the naira strengthened by 0.67% in two weeks to ₦1,485 per dollar.
FX Inflows Slide
However, beneath this resilience, inflows weakened.
FX receipts fell 32.9% to US$1.10 billion last week.
Nevertheless, foreign portfolio investors dominated, contributing 63.1% of total inflows, according to Coronation Merchant Bank.
Exporters followed with 15.3%, while non-bank corporates added 12.2%, and the CBN provided 1.3%.
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Meanwhile, foreign direct investment nearly vanished, dropping to only US$0.20 million from US$122.2 million earlier.
Consequently, analysts said investors remain cautious, monitoring policy shifts before making long-term commitments to Nigeria.
Market Convergence
At the official window, the naira slipped 1.37% week-on-week, closing at ₦1,475.35 per dollar.
In contrast, the parallel market gained 0.34%, closing at ₦1,490, which narrowed the gap between both markets.
As a result, the premium fell to 0.99%, suggesting a slow but steady convergence of exchange rates.
Meanwhile, Nigeria’s external reserves added some comfort, rising by 0.22% to US$42.68 billion last week.
Therefore, analysts expect the naira to stay largely stable unless major shocks hit external markets.
