Nigeria’s naira moved nearer to exchange rate convergence on Monday, buoyed by a sharp rise in foreign exchange inflows totalling $1.31 billion—largely driven by foreign portfolio investors.
The gap between the official and parallel market rates has now narrowed to just N2, as the naira strengthened on both fronts. Street traders exchanged the dollar at N1,530, up N7 from Friday, while the Nigerian Foreign Exchange Market closed at N1,532 per dollar, reflecting modest gains.
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Data from Coronation Merchant Bank shows that FPIs contributed over 62 percent of last week’s inflows, reinforcing continued interest in Nigeria’s debt market. Exporters and corporates made up much of the remainder.
Meanwhile, Nigeria’s external reserves rose by $500 million to $37.93 billion, a gain attributed to improved oil earnings and lower the Central Bank of Nigeria, CBN, market interventions.
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