Naira Rallies Market-Wide in Absence of FX Pressures
The Nigerian local currency, the naira, appreciated at both the official window and parallel market to settle at N1,596 and N1,615.00, respectively.
The exchange rate appreciated at the Nigeria foreign exchange market as foreign portfolio investors and exporters’ inflows lifted the liquidity level on the supply side.
With minimal FX intervention sales by the Central Bank, the local currency has continued its all-week recalibration against the dominant US dollar.
The interbank NFEM remained stable, underpinned by ample liquidity and a calm trading environment, according to analysts’ notes.
The naira appreciated by 21 bps to close at N1,596.7000, with the USD/NGN pair trading within a narrow range of N1,595 to N1,600.00 in the official market.
Nigeria’s external reserves accretion also supported improved sentiment in the foreign exchange market on Wednesday. Gross external reserves reached $38.217 billion, according to data from the CBN, as the country shipped a new crude oil blend, obodo, abroad.
Nigeria’s crude oil portfolio has expanded with the official entry of the Obodo crude blend into the global oil market in May 2025. The new medium-sweet grade marks Nigeria’s 27th distinct crude oil stream, further strengthening its position as a key player in the international energy landscape.
Obodo Blend enhances Nigeria’s diverse crude offerings, which already include some of the world’s most sought-after grades, such as Bonny Light, Forcados, Qua Iboe, Brass River, and Escravos.
Today, oil prices declined slightly on Wednesday after data revealed a surprise increase in U.S. crude inventories, raising concerns about oversupply.
Brent crude dropped 40 cents, or 0.6%, to $66.23 a barrel, while U.S. West Texas Intermediate (WTI) crude slipped 33 cents, or 0.52%, to $63.34.
Meanwhile, gold prices fell sharply, losing over 2%, as growing optimism around global trade improved investor risk appetite and reduced demand for safe-haven assets.
Spot gold dropped 2.1% to $3,180.29 an ounce, hitting its lowest level since April 11 after falling as low as $3,174.62 earlier.
Analysts highlighted that oil price volatility is likely to continue despite OPEC’s downward revision, which now anticipates lower output from the U.S. and other external producers. #Naira Rallies Market-Wide in Absence of FX Pressures#
