Naira Rises on External Reserves, FX Intervention Confidence
The naira gained about N10 against the US dollar week-on-week at the official window, buoyed by improved foreign currency supply from Foreign Portfolio Investors (FPIs) who sold USD positions and intervention.
The steady inflow of foreign funds and Central Bank of Nigeria (CBN) FX sales strengthened supply conditions across key benchmarks, resulting in naira appreciation as US dollar availability outpaced demand.
NGNUSD traded with a noticeably firmer tone, holding a tight range around the mid-N1,440s as the sharp volatility of the previous week gave way to a more orderly market, Cowry Asset Limited said in an update.
FX analysts said what stood out was not a spike in inflows, but the emergence of deeper, more balanced two-way interest. Liquidity improved, bid–offer spreads narrowed, and the market appeared to settle into a more stable pricing corridor.
The CBN FX data showed that the Naira appreciated by a modest N9.98 during the week to close at N1,446.74 per dollar at the close of the trading session on Friday.
The supply side was supported by improved liquidity from local participants, oil revenues, and offshore portfolio inflows – total FX intervention printed at $186 million, according to Cordros Capital Limited.
FX movement signalled the naira suffered against rising demand for the dollar, but pressures eased following the CBN interventions, which helped stabilise the market.
Early trading sessions were active, with bids closely matching supply, keeping the rate between N1,441 and N1,452/$. Midweek, the Naira continued trading range-bound between N1,436.50/$ and N1,442/$.
Oil prices slipped slightly on Friday but still posted a weekly gain as investors weighed the geopolitical risk premium amid protracted Russia–Ukraine peace negotiations while also looking ahead to Sunday’s OPEC+ meeting for indications of possible production adjustments.
Brent crude futures for January settled at $62.38 per barrel, up $0.43 or 0.71%, while West Texas Intermediate (WTI) futures closed at $58.55 per barrel, gaining $0.49 or 0.84%.
Gold also advanced, supported by expectations that the U.S. Federal Reserve will cut interest rates next month, boosting appetite for the non-yielding metal. Silver similarly climbed to a new record high.
Consequently, spot gold rose 4.05% to finish at $4,230.63 per ounce. OPEC+ members are expected to pause oil production increases during their virtual meeting slated for Sunday amid growing concerns of oversupply and weakness in oil prices.
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