Naira Rises to N1,344 Per Dollar in Regulated FX Market
The naira showed remarkable strength, appreciating by 0.99% to close at ₦1,344.42 per dollar in the Nigerian Foreign Exchange Market (NFEM). This upward trend reflects a positive shift in currency sentiment within the regulated market, with foreign payments slowing relative to US dollar volume.
According to daily FX data from the Central Bank of Nigeria (CBN), the spot rate fluctuated between ₦1,340 and ₦1,355 during the intraday session.
Meanwhile, the parallel market held firm at ₦1,383 per dollar, reflecting the contrasting dynamics between the official and informal foreign exchange sectors.
With over $50 billion in foreign reserves, analysts confidently assert that the outlook for the naira is robust, powered by expectations of increased foreign exchange receipts from Nigeria’s hydrocarbon sales.
Moreover, crude oil futures surged, with light crude rising 2.2% and Brent crude climbing 2.1%. Notably, reports of Israeli airstrikes resulting in the death of Iranian security chief Ali Larijani failed to stabilise oil prices.
Additionally, President Trump’s call for allies to help reopen the Strait of Hormuz was rebuffed, prompting traders to speculate that a continued closure is likely.
The upward movement in oil prices on Tuesday was mainly driven by concerns that ongoing tensions between the US, Israel, and Iran could lead to further supply disruptions and increased energy prices.
International benchmark Brent crude traded at $103.89 per barrel. US benchmark West Texas Intermediate (WTI) rose 3.2% to $96.91 per barrel.
