Naira Projected to Trade Strong Post FX Injection
A slew of forex traders in some sampled investment banking firms expressed positive views about the naira exchange rate for this week. The local currency will claw back the previous week’s losses, some analysts said, citing the Central Bank of Nigeria (CBN).
The naira exchange rate is projected to trade between N1450 and N1460 range at the official window, some commercial banks’ FX traders said, adding that the market experienced a surge due to the usual year end drive.
The naira traded on a volatile note at the FX market, pressured by FPI demand and limited supply, reaching highs of ₦1,479/$ before closing the week down ₦20.18 week on week at ₦1,475.35/$.
The exchange rate depreciated despite $70 million in CBN FX interventions and improved liquidity later in the week; meanwhile, foreign reserves rose by $92.50m to $42.68bn.
The local forex market continues to be supported by improved market liquidity from local participants, oil revenues, and offshore portfolio inflows. Early trading sessions were active, with bids closely matching supply, keeping the rate between ₦1,445 and ₦1,460/$
“We expect near-term FX market stability to continue as the CBN fine-tunes its policies”, Anchoria Securities Limited said in its update.
Brent crude declined to $61.00/b from USD 62.73/b, pressured by larger U.S. inventory builds, record output, and IEA warnings of a 2026 surplus. Sentiment weakened further on soft Chinese demand and reduced geopolitical risk following news of a Trump–Putin summit.
Gold prices remained elevated as at the close of this week, rising by 4.87% to $4,202.10/oz, nearing record highs, supported by concerns over a prolonged U.S. government shutdown and expectations of interest rate cuts.
Oil prices may stay weak as geopolitical risks ease, while precious metals could gain from safe-haven demand. Industrial metals may firm on manufacturing demand, and agricultural prices are likely to remain mixed. # Naira Projected to Trade Strong Post FX Injection Interest in Undervalued Stock to Fuel Rally in Nigerian Market
