The Nigerian naira maintained relative stability in foreign exchange trading on Monday, November 11, 2025, showing minimal changes across both official and parallel markets despite a noticeable decline in dollar supply.
Market Performance Analysis
Fresh data released by the Central Bank of Nigeria indicated the local currency experienced a slight depreciation of 72 kobo at the official trading window. The American dollar was quoted at N1,437.29 compared to the previous Friday's rate of N1,436.57 at the Nigerian Foreign Exchange Market.
In the parallel market segment, currency traders reported similar weakening trends, with the naira dropping from Friday's rate of N1,450. According to Abudullahi, a Bureau de Change operator who confirmed the latest rates, the selling price for the US dollar reached N1,460, while the euro traded at N1,670 and the British pound at N1,910.
Foreign Exchange Inflows Decline
Research findings from Coronation Merchant Bank revealed a significant 15.7% drop in total inflows through the NFEM, decreasing from $1.04 billion to $899.20 million within a week. Market analysts attributed this reduction primarily to diminished participation from foreign investors and corporate entities during the review period.
Foreign Portfolio Investors continued to dominate market liquidity, accounting for 60.13% of total inflows, equivalent to approximately $540.70 million. Other contributors included non-bank corporates (13.99%), individual participants (12.75%), and exporters (12.56%), with remaining channels making up just 0.56% of total market inflow.
External Reserves and Future Outlook
Meanwhile, Nigeria's gross external reserves recorded a marginal increase of 0.29% week-on-week, adding approximately $127.10 million to reach $43.34 billion as of November 11, 2025.
Financial experts at Coronation Merchant Bank project the naira will maintain relative stability in the near term, anticipating the local currency will remain below N1,500 per dollar. This positive forecast is supported by consistent foreign portfolio inflows into fixed-income instruments and sustained market liquidity.
However, analysts emphasized that lasting stability depends on continuous policy reforms by the Central Bank, active investor participation, and strategic measures to strengthen external reserves amid global economic uncertainties.
Market traders express optimism that anticipated Eurobond proceeds and seasonal remittances expected in coming weeks could provide additional boost to dollar liquidity, further supporting naira stability.
In related developments, Bismark Rewane, CEO of Financial Derivatives Company Limited, has projected the naira will close at N1,492/$ in 2025, citing domestication of corporate debt, diaspora inflows, and remittances as key factors expected to improve dollar supply and reduce exchange rate pressure.
