Naira Falls as Spike in FX Demand Eclipses CBN Interventions
Even with two times FX sales to banks, the Naira depreciated on Friday, trading at N1,475.35 to the dollar at the official foreign exchange market, according to figures released by the Central Bank of Nigeria (CBN).
The decline marked the end of a week characterised by fluctuating performance, during which the local currency experienced steady but mild depreciations over four consecutive trading days.
CBN data revealed that the Naira weakened by N4.32 on Friday, representing a 0.29 per cent loss compared with Thursday’s rate of N1,471.02 per dollar. The local currency weakened despite two FX interventions by the authority to redirect the spot rate at the official window.
In spite of the overall downward trend, the Naira recorded a brief rebound on Thursday, appreciating by 0.15 per cent, equivalent to a modest gain of N2.26.
Earlier in the week, the Naira exchanged at N1,457.51 on Monday, N1,463.23 on Tuesday, and N1,473.29 on Wednesday, reflecting the currency’s unstable performance across the trading sessions.
Analysts attributed the week’s fluctuations to increased demand pressures in the foreign exchange market and limited liquidity inflows, which continue to influence short-term currency stability.
On weekly comparison, the naira depreciated by ₦20.18 in the official market. It also lost ₦5.00 week on week to close at ₦1,490.00/$ in the parallel market. Hence, the spread between the two markets widened to 0.99%.
According to TrustBanc Financial Group Limited, the Apex Bank intervened at the Nigerian foreign exchange market, selling $70 million on Tuesday and Thursday to authorised dealer banks to strengthen the supply.
This week, Nigeria’s foreign reserves rose by $92.50 million to $42.68 billion amidst reports that crude oil output averaged 1.46 mbpd in a nine-month period.
Brent crude declined to $61.00/b from USD 62.73/b, pressured by larger U.S. inventory builds, record output, and IEA warnings of a 2026 surplus. Sentiment weakened further on soft Chinese demand and reduced geopolitical risk following news of a Trump–Putin summit.
Gold prices remained elevated as at the close of this week, rising by 4.87% to $4,202.10/oz, nearing record highs, supported by concerns over a prolonged U.S. government shutdown and expectations of interest rate cuts.
Oil prices may stay weak as geopolitical risks ease, while precious metals could gain from safe-haven demand. Industrial metals may firm on manufacturing demand, and agricultural prices are likely to remain mixed. # Naira Falls as Spike in FX Demand Eclipses CBN Interventions US Shutdown Masks Far Deeper Threat, CEO Says
