Data from the FMDQ platform indicated that the naira strengthened by 14 basis points, closing at N1,539.55 per U.S. dollar in the Nigerian FX market.
This upward movement was attributed to FX intervention sales by the Central Bank of Nigeria (CBN), which helped maintain a stable exchange rate against the dominant U.S. dollar.
The forex market exhibited a degree of stability, with enhanced liquidity noted. Analysts reported that FX transactions occurred within a range of N1,532.00 to N1,545.
In the previous week, the CBN sold $197.7 million to authorized dealer banks as part of its strategy to enhance FX supply. These auction sales took place on four out of five trading days. However, despite these efforts, the naira depreciated by N2 against the dollar.
Recent data from the CBN revealed a significant increase in gross external reserves, driven by inflows from foreign portfolio investors into the Nigerian economy. Gross external reserves rose to $40.816 billion, a level not seen in three years.
The CBN reported that foreign exchange inflows into the economy grew by 3.01 percent to $22.89 billion, up from $22.22 billion in Q2 2024.
Conversely, foreign exchange outflows increased by 15.18 percent to $8.43 billion compared to the previous quarter.
As a result, net foreign exchange inflow decreased by 2.97 percent to $14.46 billion, down from $14.89 billion in the preceding quarter.Brent crude was valued at roughly $72.03 per barrel, while WTI was approximately $68.66. Likewise, gold prices fell in quiet holiday-season trading on Monday, impacted by a strong dollar and elevated U.S. Treasury yields as investors anticipated more apparent indications regarding the Federal Reserve’s monetary policy for 2025