Naira Falls against US Dollar, Official, Black Market Rates ‘Tango’
The naira fell against the dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting a moderate pressure from eligible corporate FX demand. According to CBN update, the naira dipped by 38 kobo to N1535.61 per dollar to remain relatively liquid and stable amid a modest uptick in FX demand.
The pressure on the local currency has eased significantly, and intraday daily movement has been relatively limited, reflecting market confidence that upstreaming greenbacks from the Nigerian market will not be difficult.
Data from the CBN revealed that the naira traded within a narrow band of ₦1,530.00 to ₦1,537.00 per U.S. dollar before closing at ₦1,535.62. While the gap between intraday high and low spot rates signals a potential FX demand surge, analysts refuse to shift position that the CBN will watch that the exchange rate does not worsen sharply.
A slew of investment banking analysts maintain positive expectations, with projections showing that the exchange rate will remain between N1500 and N1600 in 2025. Their projections were anchored on CBN maintaining its FX intervention stance in the absence of significant shock outside the control of the monetary authority.
At the parallel market, the exchange rate pulled back to N1535 on a slight demand surge from unofficial FX users. At the current rate, the exchange rates gap between the official and parallel markets nearly matches.
With growing foreign reserves, the CBN has a strong buffer to keep the naira stable, analysts said. The latest data update revealed that Nigeria’s gross external reserves stood at approximately $38.37 billion, reflecting a daily increase of $121.12 million.
The nation’s foreign reserves rising fast despite bearish conditions in the global commodities market. For the fourth consecutive sessions on Wednesday, global oil prices fell as investors assessed the U.S. tariff deal with Japan ahead of talks between EU and U.S.
Brent crude shed 15 cents to $68.44 per barrel, while U.S. West Texas Intermediate slipped 16 cents to $65.15. Similarly, gold prices recede by over 1%, a U.S.-Japan trade deal eased market uncertainty.
Spot gold dipped by 1.22% to $3,387.86 per ounce, while U.S. gold futures closed 1.27% lower at $3,395.80. AIICO Capital Limited said the market is expected to react to the outcome of the trade talks between the EU and U.S. officials.
