Naira Poises for Strong Year-End as CBN Funds Liquidity Gap
The Nigerian naira picked up momentum against the US dollar at the official window as year-end pressure eased with support from the Central Bank (CBN) interventions.
The Apex Bank stepped up its market intervention strongly in the fourth quarter due to heightened US dollar demand pressures. To stabilise the naira, the CBN funded FX gap amidst fluctuating inflows.
According to a daily FX update released by the CBN, the spot FX rate appreciated by 0.46% to ₦1,443.38/$ at the official window on Wednesday.
The exchange rate appreciation signals that pressure in the currency market eased following $150 million FX intervention that bolstered US dollar liquidity this week.
FX data released showed that the local currency touched an intraday high of N1455, a moderate uptick from N1455.5000 quoted the previous day.
But the local currency exchange rate reflects significant improvement based on intraday spot fx rate of N1435, versus N1447.5000 the previous day.
Broadstreet analysts’ consensus remained that the naira has positive outlook with projections varying between N1450 and N1500 per dollar in 2025. The expectation is anchored on CBN sustained FX intervention, foreign portfolio investors sentiment and positive net external positions.
In the parallel market, the naira rose to ₦1,455 per dollar, reflecting continued improved currency sentiment and reduced pressures across both the regulated official segment and the informal foreign exchange market.
Prices of crude oil adjusted upward in the global commodities market on Wednesday despite supply concerns. US WTI crude futures advanced more than 3% to $58.46, gaining $1.94 since last Friday.
Brent crude oil price settled above $62 per barrel at the same time. The rally stands out during a traditionally muted period between Christmas and New Year’s, when thin liquidity often dampens movement.
Instead, geopolitical events have reshaped short-term sentiment, prompting traders to reprice supply risk despite widespread expectations that 2026 will bring heavy oversupply. VFD Group Targets N2.997bn Profit for Q1-2026
