MPC Predicts New Exchange Rate, CBN Boosts Forex Liquidity with $574m

A member of the MPC predicts a new exchange rate by December as the CBN injects $574 million to boost forex liquidity, selling $574 million in August 2025 to stabilize the FX market. This marked a 76% increase from July's intervention.

Despite a decline in total FX inflow in August, mainly due to a drop in foreign portfolio inflows, FPIs remained a significant source of inflow. Foreign direct investment weakened, while domestic inflows slowed, impacting the FX market.

The parallel market currency remained stable for international transactions. The CBN's efforts aim to stabilize the exchange rate and ensure market liquidity amid global uncertainties.