Naira Appreciates as CBN Sells Additional Dollars in FX Market
The Nigerian local currency, the naira, appreciated against the US dollar in the official foreign exchange market as the Central Bank (CBN) sold additional dollars to boost liquidity.
Data from the CBN highlighted that the naira appreciated by 0.02% in the official window, closing at N1,602.30 per dollar. Spot FX rate continue to fluctuate even with persistent support by the Apex Bank.
The Central Bank was in the forex market again today, selling $50.00 million at rates between N1,599.05 and N1,604 per dollar. Meanwhile, the local currency weakened to N1,620 at the parallel market.
Transactions at the Nigerian Foreign Exchange market traded within a range of $/₦1,591.23 to $/₦1,606. By the end of the session, the naira gained slightly, appreciating by 2 basis points to close at $/₦1,602.3043.
Nigeria’s gross external reserves closed at $37.88 billion as prices of crude oil swung in the global commodity market. On Wednesday, oil prices dropped 3% as reports suggested that OPEC+ might speed up production hikes in June.
However, the decline was limited after news emerged that U.S. President Donald Trump could reduce tariffs on Chinese goods.
Brent crude fell $1.92, or 2.85%, to $65.52 per barrel, while U.S. West Texas Intermediate (WTI) slid $1.99, or 3.13%, to $61.68. Gold prices also declined sharply, extending losses from a record high hit the day before.
Improved investor sentiment following Trump’s assurance that he wouldn’t fire the Fed Chair and signs of easing tensions with China weighed on safe-haven demand. Spot gold dropped 3% to $3,281.60, while U.S. gold futures fell 3.7%, settling at $3,294.10 per ounce.
#Naira Appreciates as CBN Sells Additional Dollars in FX Market $17bn: Nigeria Positions as World Bank’s Largest Portfolio in Africa
