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- The Nigerian currency has continued to surge against the dollar arsenic the US greenback is astatine its lowest since 2022
- Data from the Central Bank of Nigeria (CBN) shows that the naira and the country’s FX reserves climbed to caller highs past week
- Also, CBN information showed that Nigeria’s crude lipid blend, Bonny Light, cruised to a caller precocious amid easing Middle East tensions
Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.
The naira exchange complaint rose against the US dollar successful the Nigerian Foreign Exchange Market.
The improvement comes arsenic information from the Central Bank of Nigeria (CBN) shows that Bonny Light crude prices deed $81 per tube past week.
Source: Getty Images
Naira vs dollar: What is driving the surge?
The naira has remained strong, ending past week strongly, arsenic the US dollar continues to suffer its steam against large currencies successful the planetary FX markets.
According to reports, the dollar scale remained dependable astatine $97.2 connected Friday, June 27, 2025, nearing its lowest level since February 2022, aft a four-day driblet successful which it mislaid astir 1.5%, caused by expanding expectations of Federal complaint cuts.
CBN information shows that the naira appreciated against the US greenback by astir N8 week-to-date, trading astatine N1,539.23 per dollar from N1,547.43 astatine the extremity of past week.
The authoritative and achromatic markets constrictive gaps
In the parallel conception of the overseas speech market, the naira closed astatine N1,565 per dollar, thereby narrowing the spread by astir N26 from N33 successful the erstwhile week.
Market Forces Africa reported that Nigeria’s overseas reserves ended the week astatine $37.37 billion, rising by astir 0.78% from the erstwhile week’s $37.66 cardinal owed to caller inflows.
The study disclosed that crude lipid prices recorded a play loss, caused by easing Middle East tensions, which person lowered fears of proviso disruptions.
Crude lipid price: The effect connected the naira?
Brent crude dipped to astir $68 per barrel, portion WTI sold somewhat supra $65, some down from past week’s highs.
Nigeria’s Bonny Light remained resilient, selling adjacent to $81 per barrel, CBN information says.
Meanwhile, the naira rallied crossed the authoritative and achromatic markets, appreciating N1,539 per dollar and N1,565, respectively, supported by improving marketplace sentiment and FX inflows.
Information from the Nigerian Exchange Limited’s (NGX) Domestic and Foreign Portfolio Report showed that full transactions connected the NGX roseate by 45.3% to N700.50 cardinal successful May from N483.04 cardinal successful the erstwhile month.
The show was caused by higher information from home and overseas investors.
Source: Getty Images
Analysis shows that home investors’ inflows dipped by 38.38% monthly to N581.59 billion, caused by a emergence successful transactions from retail and organization investors.
How FX inflows lifted the naira
Also, overseas capitalist inflows grew aft a period of diminution by 88.5% monthly to N118.91 cardinal from N63.07 cardinal successful April, owed successful portion to moderating fixed-income yields and improved marketplace confidence.
Net inflows dropped by 54.0% to N2.64 cardinal successful May from N5.74 cardinal successful April, caused by beardown nett FX inflows of N13.31 cardinal outweighing nett home outflows of N10.67 billion.
According to analysts astatine Cordros Capital Limited, successful the adjacent term, home investors volition stay the main drivers of the transaction value, supported by an expected diminution successful fixed-income yields.
They maintained that the naira’s comparative stableness whitethorn promote accrued information from overseas investors successful the equities market.
CBN crashes the dollar for importers
Legit.ng earlier reported that the Nigerian currency rallied against the US dollar for 2 consecutive days connected Thursday, June 26 and Friday, 27, 2025, closing the week beardown successful the authoritative window.
The naira appreciated pursuing the involution of the Central Bank of Nigeria successful the overseas speech market.
At the adjacent of trading connected Friday, June 27, the section currency inched higher, closing astatine N1,537.90 against the US greenback from N1,547 per dollar, the erstwhile day.
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Source: Legit.ng
