Naira Rebounds in Absence of Dollar Shortage in FX Market
At the Nigerian Foreign Exchange Market, the naira reclaimed value by 0.29% to close at ₦1,586.15 per US dollar, from ₦1,590, according to FX data update from the Central Bank. Whereas in the parallel market, the naira closed at ₦1,615 per dollar amidst expectations that the Apex Bank will stop selling dollars to bureau de change at the official rate from May 2025.
The rally was supported by an improved dollar liquidity driven in part by the Central Bank’s intervention. The USD/NGN pair traded within a narrow band of N1,584.50 to N1,590.70.
With sufficient inflows and moderate corporate demand, analysts said, barring major shocks, the naira should remain within its current exchange rate range. In the global commodity market, oil prices declined on Thursday, reversing earlier gains, after the International Energy Agency warned of weaker Chinese demand.
Investors also monitored potential new U.S. sanctions on Russian crude and an upcoming OPEC+ decision on July output. Earlier, prices had risen following a U.S. court ruling that President Trump exceeded his authority in imposing broad tariffs, boosting global risk appetite.
However, the ruling excluded specific industry tariffs and may be temporary, as the administration plans to appeal. Brent crude dropped 60 cents to $64.30, while WTI fell 67 cents to $61.17.
Analysts anticipate OPEC+ will approve another 411,000-bpd production hike, maintaining this incremental increase through Q3 as the group prioritizes market share retention. #Naira Rebounds in Absence of Dollar Shortage in FX Market
