Naira Drops as Foreign Payments Surpass U.S. Dollar Volume
The Nigerian local currency, the naira, dropped against the US dollar across Nigerian foreign exchange markets as international payments began to pick up. The naira rate suggests foreign payments surpassed US dollar volume supplied after data showed FX inflows has been on the decline.
Daily FX update released by the Central Bank of Nigeria (CBN) revealed that the naira on Wednesday weakened by 37 kobo against the US dollar to close at N1,420.04/$ at the official window.
The spot rate depreciation was driven by inadequate supply to meet the market demand as the naira traded within the range of N1,421.00-N1,419.00 per dollar during the session.
In the parallel market, the spot rate dipped to N1485 per dollar, reflecting a sustained surge in US dollar at the informal currency market.
Meanwhile, the External Reserve added $40.26 million to the previous day’s balance, bringing total reserves to $45.78 trillion, supported by inflows across sources amidst uncertainties around oil price projections for 2026.
Global oil prices rose on Wednesday for a fifth straight session on fears of Iranian supply disruptions due to a potential U.S. attack on Iran and possible retaliation against U.S. regional interests. Brent crude climbed 59 cents, or 0.90%, to $66.06 per barrel, while U.S. West Texas Intermediate (WTI) rose by 70 cents, or 1.15%, to $61.63.
Similarly, Gold surged to a record high, as geopolitical and economic uncertainties drove investors toward safe-haven assets, while expectations of Federal Reserve rate cuts added further momentum.
Spot gold price rose 86bps to $4,627.42/oz, while U.S. gold futures followed, edging up 76bps to $4,634.20/oz. Analysts at AIICO Capital expect market to trade mixed, with precious metals remaining supported by Fed rate-cut expectations, while oil prices trade cautiously amid mixed supply dynamics and lingering geopolitical concerns. MTN Nigeria Rallies to Record High on Renewed Investor Confidence
