Naira Rises to N1,494 as FX Market Remains Liquid
The naira rallied further in the foreign exchange market as the supply side became heavier versus total amount of US dollar logged for foreign transactions. Spot FX rate appreciated by 1.04% to N1,494.03 per US dollar in the official window, according to data obtained from the FMDQ platform.
The local currency has been relatively stable as foreign investors confidence in the financial market improved due to FX reform that ended capital control era, and allow for liberalisation.
On Thursday, the Nigerian Foreign Exchange Market (NFEM) maintained relative stability, supported by successive FX interventions from the Central Bank, with trading rates ranging between $/₦1,490.00 to $/₦1,515.00.
The positive effects of sustained US dollar sales to banks bolstered liquidity in the forex market where Bureau de Change (BDCs) operators are drawing strength. Recall the CBN extended BDCs operators temporary FX purchase from Nigerian banks to allow from market wide exchange rate recalibration.
In the parallel market, exchange rate also appreciated by 1.66% to N1,510.00, investment banking firm CardinalStone Limited said in a note. External reserves fell below $40 billion amidst aggressive FX sales to banks. Some analysts argue that the Central Bank of Nigeria (CBN) might have been drawing from the reserves to defend the naira’s value.
Oil prices remained steady after nearing a one-week high in the previous session, as market sentiment was dampened by an industry report indicating a rise in U.S. crude inventories. Brent crude gained 50 cents to $76.54 per barrel, while WTI advanced 46 cents to $72.71.
Meanwhile, gold prices soared to a new record as escalating trade tensions, driven by U.S. President Donald Trump’s tariff threats, increased demand for safe-haven assets. Spot gold remained stable at $2,930.19 per ounce after reaching $2,954.69 earlier, marking its tenth record high of the year.
Analysts anticipate continued volatility as the market remains directionless, balancing supply disruptions in Kazakhstan and the OPEC+ production delay against concerns over global demand. #Naira Rises to N1,494 as FX Market Remains Liquid Ministry Seeks $2 billion Fibre Optics Funding
Reported by Ogochi Ndubuisi -08077884656
