Naira Rate Closed at N1599 as CBN Keeps FX Tap Open
The naira popped higher against the US dollar to close at N1598.54 in the official window acknowledged by the Central Bank of Nigeria for daily FX spot rate.
The Nigeria Foreign Exchange Market (NFEM) opened quietly after the holidays but turned bullish on the US dollar, prompting the CBN to intervene with an estimated $50 million sale at $/₦1598.85–1605.00.
Throughout the week, liquidity improved with inflows from oil and gas exporters, alongside consistent CBN intervention, AIICO Capital Limited said in its investor update this week.
Analysts said FX volatility eased, narrowing bid-offer spreads to ₦2–₦3, while the pair traded within N1599–1606. Despite improved sentiment, the naira slightly depreciated to close at N1599.55 amidst sustained decline in gross external reserves.
The foreign reserve dipped by about $66 million to $37.81 billion as analysts noted that the recent OMO auction highlight the CBN’s readiness to use all monetary policy tools to maintain the Naira’s stability within its current range
Oil prices ticked higher on Friday but recorded a weekly loss, weighed down by oversupply concerns and uncertainty over U.S.-China trade talks.
Brent crude futures rose 32 cents to settle at $66.87 a barrel, ending the week down 1.6%. U.S. West Texas Intermediate (WTI) crude added 23 cents to $63.02, posting a 2.6% weekly drop.
Meanwhile, gold prices slipped 2% on Friday and were set for a weekly decline as the dollar strengthened and optimism over U.S.-China trade relations pressured demand for the safe-haven asset.
Spot gold fell 1.7% to $3,292.99 an ounce after earlier dropping by as much as 2%. Bullion recorded a 1.2% loss for the week, reversing some of its recent gains.
Market analysts said persistent trade tensions between major oil consumers and potential OPEC+ production increases from June are tempering expectations for further price gains. #Naira Rate Closed at N1599 as CBN Keeps FX Tap Open#
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