Naira Appreciates by N11 at Nigerian Foreign Exchange Market
The naira appreciated against the US dollar as the Central Bank of Nigeria (CBN) continued to intervene in the official currency market to stabilise the rate.
Supported by sustained FX intervention by the CBN, the naira appreciated against the US dollar in the Nigerian Foreign Exchange Market (NFEM), gaining ₦11.04 per US dollar at the close of session last week.
During the week, the Naira traded in a range of ₦1,431.00 to ₦1,466.00 per US dollar, showing consistent appreciation across all three trading sessions. The spot rate strengthened after the authority stepped up FX intervention with $150 million.
The market expects near-term exchange rate stability to persist underpinned by policy measures and improving market confidence
Oil prices settled higher week-on-week but marginally lower on Wednesday, as investors weighed U.S. economic growth and assessed the risk of supply disruptions from Venezuela and Russia.
Brent crude futures for February settled at $62.24 per barrel, up $1.12 or 1.83% week on week, while West Texas Intermediate (WTI) futures closed at $58.38 per barrel, gaining 94cents or 1.64%w/w.
Similarly, gold edged lower on Wednesday, taking a breather after surging past the key $4,500/oz mark earlier in the session, while silver and platinum trimmed some gains following their record-breaking rally. Consequently, spot gold rose by 4.12% week on week to finish at $4,479.64 per ounce.
Analysts expect risk-on sentiment to extend into next week, supporting further gains in precious metals alongside continued oil price resilience on strong U.S. growth data and ongoing supply risk concerns.
