Nigeria's FX Inflows Drop to $672m Despite Naira Strengthening, Market Concerns Rise

Nigeria's foreign exchange market experienced a decline in weekly dollar inflows despite the Naira's appreciation in both official and parallel markets. The total inflow in the Nigerian foreign exchange market fell to $672.30 million, with foreign portfolio investors continuing to be the main source of supply.

The Central Bank of Nigeria's interventions have supported the Naira's value, but concerns persist over speculative activities and the need for structural progress to address market fluctuations. Analysts caution that the current convergence may be temporary, emphasizing the importance of reducing arbitrage opportunities and enhancing supply to stabilize the Naira.