Naira Gains N17.45 as FX Inflow, Foreign Reserves Climb
The naira gained N17.45 on each foreign payment at the official window as a result of sufficient FX inflows available at the supply side amidst broader pressures on the US dollar.
The spot rate at the Nigerian Foreign Exchange Market (NFEM) strengthened by 125bps or ₦17.45 against the U.S Dollar, according to the Central Bank’s daily FX update released on Tuesday.
The appreciation was driven by inflows from Foreign Portfolio Investors (FPIs) and local participants, AIICO Capital Limited said.
The local currency traded within the ₦1,360.00/$ and ₦1,387.00/$ band during the session before settling at ₦1,372.91/$ amidst growing external reserves, according to FX analysts at AIICO Capital, citing data from the Apex Bank.
Latest data revealed that Nigeria’s gross external reserves edged higher to $46.59 billion, reflecting an addition of $314.94 million day-on-day.
Elsewhere, global oil prices crept higher on Tuesday after falling more than 4% in the previous session as market participants considered the global supply outlook and the possibility of a de-escalation in U.S.-Iran tensions.
Brent crude spiked 2.68% or $1.77, hovering around $67.91 per barrel, while U.S. West Texas Intermediate (WTI) rose 3.12%, to around $63.84.
Similarly, gold prices rose sharply, fueling increased demand for tokenized gold—a rapidly expanding segment of the digital asset market that experts caution carries often overlooked custody and regulatory risks for investors.
Spot gold price climbed 515 basis points to $4,906.41/oz, while U.S. gold futures jumped 695 basis points on Tuesday in the commodity market, hovering around $4,975.95/oz.
Analysts at AIICO Capital expect markets to trade with choppy sentiment-driven volatility, as oil prices remain cautious amid possible U.S.– Iran de-escalation and precious metals fluctuate over shifting risk appetites. CBN Sets for N1.15trn Nigerian Treasury Bills Sales
