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Exporters emerged as the dominant source of foreign exchange liquidity in Nigeria’s official market last week, accounting for 43.30 per cent of total inflows, even as the Central Bank of Nigeria (CBN) extended its absence from the foreign exchange window for the sixth consecutive week.
Data obtained from the apex bank’s website revealed that total FX inflows into the market stood at US$689.00 million, representing a 26.04 per cent week-on-week (w/w) decline, underscoring lingering pressure on supply conditions despite improved participation from autonomous sources.
However, exporters contributed the largest share at US$298.30 million, reaffirming their growing role in sustaining liquidity in the absence of direct central bank intervention.
Foreign portfolio investors (FPIs) followed closely, contributing 39.26 per cent or US$270.50 million, as short-term capital inflows continued to provide support for market activity. Non-bank corporates accounted for 14.36 per cent (US$98.90 million), while other corporates contributed 1.87 per cent (US$12.90 million). Miscellaneous sources made up the remaining 1.21 per cent.
The sustained absence of CBN participation has further shifted the structure of the foreign exchange market toward autonomous inflows, with exporters and portfolio investors now jointly accounting for the bulk of available supply. Market analysts note that this transition, while improving transparency in price discovery, also exposes the market to volatility driven by fluctuations in export earnings and global investor sentiment.
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Despite the decline in total inflows, the Naira showed mixed performance across segments of the foreign exchange market. At the Nigerian Foreign Exchange Market (NFEM) window, the local currency weakened marginally by 0.48 per cent w/w, closing at N1,370.46/$1 compared with N1,363.83/$1 in the previous week.
The currency, however, began the week on a stronger footing, appreciating to N1,356.27/$1 before reversing gains amid weaker supply conditions in the latter part of the trading period. In contrast, the parallel market recorded a modest appreciation, with the Naira strengthening by 0.36 per cent to N1,400/$1 from N1,405/$1 the previous week.
This movement narrowed the gap between official and parallel market rates, with the premium reducing to 2.16 per cent from 3.02 per cent a week earlier. The convergence reflects improving alignment across market segments, even as liquidity constraints persist.
On the external front, Nigeria’s gross foreign exchange reserves strengthened further, rising by 1.05 per cent w/w to US$51.04 billion as of June 18, 2026. The increase of US$529.71 million provides a modest buffer for external obligations and supports near-term market stability. Reacting to the development, analysts at Coronation Merchant Bank, said, “We expect the Naira to remain broadly stable in the short term, supported by continued exporter inflows and sustained participation from foreign portfolio investors. However, the absence of CBN supply leaves the market more dependent on volatile autonomous sources, making FX conditions sensitive to shifts in global commodity prices and investor sentiment”.
