The naira slipped slightly against the dollar Wednesday despite a surge in foreign currency inflows.
Investor confidence showed signs of recovery as July FX inflows rose sharply, boosting market outlook.
On Wednesday, the naira experienced a minor depreciation against the U.S. dollar in the official foreign exchange (FX) market, even as foreign currency inflows saw a significant boost. According to data from the Central Bank of Nigeria (CBN), the naira fell by 0.12%, closing at N1,536.73 per dollar, compared to N1,534.93 per dollar on Tuesday at the Nigerian Foreign Exchange Market (NFEM).
In contrast, the parallel market exchange rate stayed steady at N1,545 per dollar. On the same day, Guaranty Trust Bank (GTBank) revised its FX rate for international card transactions, reducing it from N1,545 to N1,543.
Fresh data from the FMDQ revealed a 24% month-on-month increase in FX inflows for July 2025, signaling a rebound in investor confidence.
Notably, non-bank corporates have consistently outpaced foreign portfolio investors (FPIs) in weekly inflows over the past two weeks. A recent report from FBNQuest indicated that FPIs contributed about 45% of total inflows in July, with offshore investor participation rising to $1.7 billion, up from $1.5 billion in June.
