Naira Mixed as CBN Pumps US Dollars into FX Market
The Nigerian local currency, the naira, traded mixed against the US dollar in the official window and parallel market following a fresh foreign currency injection by the supply side actors.
The exchange rate closed at N1538.68 per US dollar, unchanged from the previous trading session as the Central Bank of Nigeria (CBN) stemmed the negative tide against the local currency with FX sales to authorised dealer banks.
However, the spot FX rate at the parallel market worsened to N1,590 in the parallel on the back of tight weekly supply of $25,000 weekly sales to Bureau de Change (BDC) operators.
The FX market experienced heightened demand pressure, but the rate was unchanged at the CBN injected over $164.95 million at rates between $/₦1,543.09 and $/₦1,556, AIICO Capital Limited said in an investors note.
The firm stated that during the session, the USD/NGN pair traded within $/₦1,543 to $/₦1,570, and analysts expressed view that the monetary authority will keep boosting liquidity in the forex market to halt the naira’s free falling.
Oil prices declined on Thursday as markets assessed macroeconomic risks, including concerns that tariff disputes between the U.S. and other nations could dampen global demand.
Brent crude fell 54 cents, or 0.8%, to $70.41 a barrel, while U.S. West Texas Intermediate crude dropped 63 cents, or 0.9%, to $67.05. Meanwhile, gold surged to a record high, nearing the $3,000-per-ounce mark, fuelled by tariff uncertainty and expectations of Federal Reserve policy easing. Spot gold rose 1.6% to $2,977.36 an ounce.
Analysts said global oil supply may surpass demand by 600,000 bpd this year, driven by U.S. supply growth. Demand is forecast to rise by 1.03 million bpd, led by Asia, particularly China, down 70,000 bpd from last month’s estimate. #Naira Mixed as CBN Pumps US Dollars into FX Market Parallel Market Premium Disappears as Naira Exchange Rates Converge
