CBN FX Rate Slides to N1582 vs Dollar on Subpar Injection
The Central Bank of Nigeria (CBN) official exchange rate depreciated to N1583 per US dollar, according to an update released on Tuesday. The naira fell as a $50 million FX intervention failed to redirect exchange rate movement in the official window.
The FX market remained bid amid heightened demand for FX and constrained dollar supply, a reverse to the trend witnessed last week, where the local currency experienced an all-week rally.
According to investment firm AIICO Capital Limited, the USD/NGN pair traded between $/₦1,581.92 and $/₦1,591.00 during the session. Consequently, the naira depreciated by 27 bps to close at ₦1,583.7388 and analysts said that barring major shocks, the naira should trade within the current range this week amidst external reserves fluctuation.
Nigeria’s foreign reserves fell after a series of inflows. Some analysts think the sustained FX interventions dragged the gross external reserves lower this week. The CBN sold FX totalling $190 million to banks last week to bolster supply. Again, the Apex bank intervened in the forex market today, selling $50 million.
Data from the CBN revealed that gross external reserves declined to $38.531 billion on Monday amidst sustained FX injections into the currency market and uncertainties in the global commodity market.
Oil prices declined on Tuesday amid growing expectations that OPEC+ will agree to raise production levels at an upcoming meeting. Brent crude fell 65 cents, or 1%, to close at $64.09 per barrel, while U.S. West Texas Intermediate (WTI) dropped 64 cents, or 1.04%, to end at $60.89.
Meanwhile, gold prices fell for the second straight session as improved risk sentiment followed President Trump’s decision to delay tariffs on the EU. Spot gold declined 1.2% to $3,302.10 an ounce after posting nearly 5% gains the previous week.
Sources indicate OPEC+ will likely approve a 411,000-bpd output hike for July during the meeting, maintaining its gradual supply return. #CBN FX Rate Slides to N1582 vs Dollar on Subpar Injection Tinubu Seeks Senate Approval of 2025-2026 External Borrowing Plan of $21.5bn
