The Central Bank of Nigeria sold $574 million in August, a 76 percent rise from July, as part of efforts to stabilise the foreign exchange market. The intervention came amid weakening inflows, which fell 12 percent month-on-month to $3.4 billion, according to Nigerian financial organisation FMDQ’s data.
Analysts attributed the drop mainly to a sharp decline in foreign portfolio inflows, down 35 percent to $1.1 billion. Despite the fall, portfolio flows remained the dominant source of foreign exchange, with fixed-income investments accounting for the bulk. Foreign direct investment stayed subdued at $22 million.
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Domestic FX contributions also weakened, with corporate inflows dropping by 28 percent to $826 million, though export receipts rose modestly to $654 million. Analysts cautioned that Nigeria’s reliance on volatile portfolio flows highlights structural vulnerabilities, while calling for greater export growth to ensure long-term stability.
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