Naira Rebounds as Foreign Reserves Reach $41.22bn
The naira strengthened marginally to N1537 per dollar at the foreign exchange market amidst sustained accretion into Nigeria’s foreign reserves. FX spot data from the Central Bank of Nigeria (CBN) showed that the naira recovered from previous day pressures from increased demand for dollars.
The FX rate closed at N1537.07 at the official window, from N1537.61 per dollar the previous day. Some analysts attributed the exchange rate recovery to the latest round of dollar inflows from foreign portfolio investors that participated in the CBN open market operations.
Reflecting negative development in the forex market, the naira touched an intraday high of N1538.50 but closed the day at N1537.20 after it hit an intraday low of N1536.25 per dollar.
Similarly, the naira appreciated to close at ₦1,542 per dollar at the parallel market as local banks sold to customers using naira debit cards at ₦1,544 per greenback on Wednesday.
Barring any external shocks, analysts maintained that the naira will remain broadly stable, trading within the current range, underpinned by sustained FX inflows and CBN support. An update obtained from the CBN platform revealed inflows into the nation’s external reserves have persisted.
Nigeria’s gross external reserves increased to $41.220 billion on Tuesday, the highest level seen since 2021, from $41.190 billion at the beginning of the week.Meanwhile, oil prices closed higher on Wednesday after U.S. crude inventories posted a sharper-than-expected decline, while markets also considered the possible effects of new U.S. tariffs on India.
Brent crude rose 83 cents, or 1.2%, to $68.05 per barrel, and West Texas Intermediate climbed 90 cents, or 1.4%, to $64.15, rebounding from Tuesday’s 2% drop. Gold prices were little changed as investors awaited inflation data for signals on interest rate cuts. Concerns over the Federal Reserve’s independence lingered after President Trump’s attempt to dismiss a Fed governor.
Spot gold edged up 0.1% to $3,394.49, while December futures gained 0.5% to $3,448.60. Investors await fresh inflation-sensitive demand cues tied to potential U.S. rate cuts and geopolitical uncertainty #Naira Rebounds as Foreign Reserves Reach $41.22bn MTN vs. Airtel Cloud War Could Boost Share Prices: What Investors Need to Know
