Naira records marginal depreciation despite FX inflows rise

The naira on Wednesday recorded a marginal depreciation against the dollar in the official foreign exchange (FX) market, despite increased foreign exchange inflows into the market.

Data obtained from the Central Bank of Nigeria (CBN) showed that the naira lost 0.12 per cent or N1.80 as the dollar was quoted at N1,536.73 yesterday, compared to N1,534.93 quoted on Tuesday at the Nigerian Foreign Exchange Market (NFEM).

In the parallel market, the local currency held steady at N1,545 per dollar.

On the same day, GTBank reduced the FX rate for international transactions to N1,543, down from N1,545 charged on Monday.

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FX inflows into the country rose 24 per cent month-on-month in July 2025, regaining momentum and signalling improved investor sentiment, as non-bank corporates overtook foreign portfolio investors (FPIs) for two consecutive weeks, according to FMDQ data.

A recent report by FBNQuest shows total inflows climbed to approximately $3.8bn in July, up from $3.1bn in June. Despite the improvement, inflows remain well below the $6.7bn peak recorded in May, underlining continued volatility in FX liquidity.

FPIs remained the single largest driver of inflows overall, contributing around 45 per cent of July’s total. Offshore investor inflows rose to $1.7bn, from $1.5bn in June, reflecting tentative foreign investor interest amid favourable carry trade dynamics and relatively stable global macro conditions.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.