Naira Hovers at N1529, Exchange Rates Gap Now N31
The naira was relatively unchanged against the US dollar in forex market on Tuesday in the absence of significant demand pressures. The Nigerian Foreign Exchange Market (NFEM) rate ended that day at N1529 per dollar.
Currently, the volume of US dollars remains substantial to cover aggregate FX demand in the official window. This has kept the local currency exchange rate strong against the greenback, supported by foreign investors’ confidence, exporters’ inflows, and the Central Bank’s sustained interventions.
Data from the Central Bank of Nigeria revealed that the naira appreciated to N1529.57 from N1529.71 per dollar in the official window. Transactions were consummated between N1521 (day low) and N1531.5000 (day high) before closing at N1527.
“The NFEM rate is derived at volume-weighted average and stands as the official exchange rate for the day”, the CBN guided. In the parallel market, the spot rate remained unchanged at N1,565.
Hence, the spread or exchange rate gap between the official and parallel markets settled at N31 as the CBN is still seeking FX convergence, naira stability, and sufficient liquidity.
In the global commodity market, oil prices inched up on Tuesday as investors weighed encouraging demand signals while remaining cautious ahead of an OPEC+ meeting to determine August production levels.
Brent crude rose 37 cents, or 0.6%, to settle at $67.11 per barrel, while U.S. West Texas Intermediate (WTI) gained 34 cents, or 0.5%, to $65.45 per barrel. Meanwhile, gold prices climbed over 1% as investors turned to safe-haven assets following the U.S. Senate’s passage of President Donald Trump’s “big, beautiful bill” ahead of the July 9 trade tariff deadline.
Spot gold rose 1.1% to $3,338.24 per ounce, while U.S. gold futures closed 1.3% higher at $3,349.80. Investors are closely watching OPEC+’s upcoming meeting, where the group may increase output by 411,000 barrels per day. This move aims to strengthen their market position against US shale producers.
In a second quarter report, investment firm Parthian said commodity price volatility in Q2 was further exacerbated by geopolitical events.
A brief but intense conflict in the Middle East—a 12-day war ignited by strikes on Iran’s nuclear facilities in mid-June—sent oil prices surging above $80 per barrel in a matter of days.
This price spike provided a windfall for oil-exporting SSA countries (offering short-term fiscal breathing room) but simultaneously strained oil importers with higher energy costs. Fortunately, a swiftly brokered ceasefire brought relief: by the end of June, Brent crude had retreated to the mid-$60s.
The supply risk premium ebbed as OPEC+ signaled modest output increases and U.S. shale production hit record highs. Nonetheless, the quarter’s oil price whipsaw underscored the fragility of market sentiment amid geopolitical flare-ups. OMO, Treasury Bills Yields Fall Ahead of Q3 Borrowing Plan
