Naira Falls to N1465 as Dollar Demand Increases in FX Market
The naira fell to N1465 per US dollar at the Nigerian foreign exchange market as demand for foreign currency increased above the supply side on Friday.
Based on a slew of analysts’ projections, the outlook for the naira remains positive despite spot rate fluctuation. The Apex Bank FX intervention and hot money from foreign investors seeking to bet on naira assets keep the outlook strong amidst rising external reserves.
The naira has seen significant gain that has triggered some bullish predictions for the year. The spot FX rate settled at N1465.6776 versus US dollar at the official window, the Central Bank of Nigeria (CBN) confirmed in its latest update.
The exchange rate touched an intraday high of N1472, worse than the previous day, which suggests higher corporate FX demand. The spot rate hit N1446 per dollar during the day before demand alerted FX rate direction.
The naira strengthened over the week, supported by improved liquidity from local participants, oil revenues, and offshore portfolio inflows.Early sessions were active, with bids largely matching available supply, keeping the rate around ₦1,455–₦1,460/$.
Midweek, tight demand-supply conditions briefly pushed the rate to ₦1,455.24/$, but increased local dollar flows and modest CBN interventions helped stabilise the market.
By week’s end, favourable liquidity and sustained FPI inflows drove the naira stronger. Forex market analysts expect near-term FX market stability to continue as the CBN fine-tunes its policies.
The nation’s external reserves climbed to $42.3 billion as a result of non-stop FX inflows from hydrocarbon revenue amidst price fluctuation in the commodity market.
Oil prices rose on Friday but fell 0.96% for the week due to potential OPEC+ supply increases, with Brent at $64.94/bbl and WTI at $60.88/bbl. Gold climbed 3.31% to $3,886.84/oz, nearing record highs, supported by concerns over a prolonged U.S. government shutdown and expectations of interest rate cuts.
