Naira Depreciates Despite CBN’s $112m FX Intervention
The naira depreciated against the US dollar in the foreign exchange (FX) market despite intervention by the Central Bank of Nigeria (CBN).
Increasing demand for the US dollar and other foreign currencies for settlement of international payments has forced the naira to give up gains posted. Analysts expect the CBN to keep a night watch on exchange rate movement amidst the final settlement of Covid-19 borrowings in 2025.
Latest spot FX data revealed that the local currency depreciated by 0.84% in the official window, closing at ₦1,530.15 per US dollar from N1,517.24 at the beginning of the trading session on Monday.
US Dollar liquidity was firmed during early trading hours on Monday, with a calmer market as many participants remained on the sidelines awaiting CBN intervention. Transactions were consummated between the rate of ₦1,520 and ₦1,545 for most of the session, supported by inflows from foreign investors and local corporations, AIICO Capital Limited revealed in a market update.
To boost inflows in the FX market, the CBN sold $112.20 million between N1,524.5 and ₦N1,537 to authorized banks. Despite this, the naira depreciated by 85 bps, closing at ₦1,530.15. According to data from the CBN reserves movement, the gross external reserves fell to $38.35 billion on Friday following sustained US dollar sales to banks and debt servicing payments.
Elsewhere, oil prices declined on Monday as uncertainty over U.S. tariffs and increased output from OPEC+ weighed on the market, though potential sanctions on Iranian oil exports limited further losses.
Trading record revealed that Brent crude fell 44 cents to $69.92 per barrel while U.S. West Texas Intermediate crude dropped 40 cents to $66.64. Meanwhile, gold prices edged lower as profit-taking offset safe-haven demand driven by geopolitical uncertainty, with investors also focusing on upcoming U.S. inflation data.
Spot gold slipped 0.2% to $2,904.50 an ounce after gaining 2% the previous week, while U.S. gold futures dipped 0.1% to $2,910.90. #Naira Depreciates Despite CBN’s $112m FX Intervention U.S. Dollar Mixed as Euro Stabilises at 4-Month High
