Naira Climbs as CBN, FPIs Boosts US Dollar Liquidity
The Nigerian local currency, the naira, climbed at the foreign exchange market as foreign portfolio investors (FPIs) boosted US dollar liquidity amidst rising external reserves.
The volume of US dollars increased, and the Central Bank of Nigeria (CBN) supported the flow with FX intervention sales, helping the local currency close stronger than the previous day. The market also witnessed inflows from offshore investors who participated in the open market operations.
According to an FX data update from the CBN, the naira appreciated slightly to N1535.78 on Thursday, from N1536.73 the previous day, as dollar supply outpaced demand.
In a commentary note, AIICO Capital Limited said the US dollar liquidity improved at the official level following CBN intervention, the amount of which is yet to be disclosed. Intraday trading data revealed the naira was quoted between ₦1,535.25/$ and ₦1,538.00/$. It appreciated by 6 bps to close at ₦1,535.78/$.
Nigeria’s gross reserves rose to $41.04 billion as of 21 August 2025, up $44.87 million from the previous day. Analysts anticipate rate moderation around a similar level amidst growing external reserves.
In the global commodity market, oil prices gained nearly a dollar per barrel on Thursday as peace talks between Russia and Ukraine stalled, with both sides trading blame, while U.S. data pointed to stronger demand in the world’s top oil consumer.
Brent crude rose 83 cents, or 1.2%, to settle at $67.67, its highest in two weeks, while U.S. West Texas Intermediate added 81 cents, or 1.3%, to close at $63.52.
Meanwhile, gold prices slipped as the dollar firmed, and investors looked ahead to Federal Reserve Chair Jerome Powell’s Jackson Hole speech. Spot gold fell 0.3% to $3,337.95, while U.S. futures ended 0.2% lower at $3,386.50.
Oil traders remain cautious as hopes for a near-term diplomatic resolution in Ukraine fade, reversing the selloff driven by earlier optimism over U.S.-led negotiations.
Meanwhile, markets are closely watching the Jackson Hole symposium, where Fed Chair Powell’s Friday speech may offer clues on potential rate cuts. #Naira Climbs as CBN, FPIs Boosts US Dollar Liquidity Naira Falls While Nigeria’s External Reserves Cross $41bn
