Naira Rises to N1,536 as Oil Companies Boost FX Inflow
The naira rose sharply against the US dollar at the Nigeria foreign exchange market as inflows from the international oil companies and other offshore investors boosted FX liquidity.
Data from the Central Bank of Nigeria (CBN) showed that the naira gained 85 bps to close at $/₦1,536.0817 per greenback on Thursday in the absence of demand pressures.
The exchange rate improvement was supported by improved FX liquidity from local sources, International Oil Companies (IOCs), and Foreign Portfolio Investors (FPIs), AIICO Capital Limited said in a note.
The investment firm said this was driven by a broader risk-on sentiment in global markets. Trading volumes were substantial, with the USD/NGN pair ranging between $/₦1,534.00 and $/₦1,549.50.
The latest update from the CBN revealed that gross external reserves printed at $37.41 billion, representing a decline of $54.09 million. The naira is likely to remain stable near current levels.
Elsewhere, oil prices inched up on Thursday, supported by a drop in U.S. crude inventories due to rising fuel demand during the summer driving season.
However, easing concerns over supply disruptions from the Middle East limited gains. Brent crude futures settled at $67.73 a barrel, up 5 cents, or 0.07%, while U.S. West Texas Intermediate (WTI) crude rose 32 cents, or 0.49%, to $65.24.
Meanwhile, gold prices remained steady as markets awaited U.S. inflation data to assess future interest rate moves, with geopolitical tensions in the Middle East appearing to calm.
Spot gold was unchanged at $3,333 per ounce. The quick ceasefire push signals Trump’s concern over oil price spikes. This likely limits how much geopolitical risk gets priced in, even if tensions continue. Benchmark Yield on FGN Bond Falls after DMO Repriced Rate
