Naira Sees Last Minute Rally as CBN Boost FX Liquidity
The naira rebounded against the dominant foreign currency, the US dollar, in last-minute transactions supported by a relatively higher liquidity supply by the monetary authority.
The exchange rate appreciated by about 2% to settle at N1,517.93 in the official market on Friday after persistent negative volatile. Spot FX data obtained showed that the naira gained N29.89 on the day due to FX sales to banks, additional inflows from foreign sources, and reduced demand for foreign payments.
Apex Bank FX interventions and inflows from offshore clients and local corporations boosted volume of US dollar in the official window, AIICO Capital Limited dropped the hint in an investors note.
However, analysts noted demand pressure persisted, leading to fluctuations in the US dollar to naira exchange rate. Details of the transaction conducted in the official markets revealed that the naira traded within a range of N1,520 – N1,570, reflecting demand and supply levels this week.
The CBN intervened in the forex market to boost liquidity. The CBN sold over $336.85 million at rates between N1,524.5 and N1,556, AIICO Capital Limited said. Despite these interventions, demand outpaced supply, causing the naira to depreciate. By the end of the week, the market recorded improved liquidity, with trades ranging between N1,480 and N1,548.
The naira closed the week at N1,517.93 against the dollar, bolstered by sustained support from the Apex Bank. In the global commodity market, oil prices recovered on Friday following a decline of over 1% in the previous session, as investors reassessed the likelihood of a swift resolution to the Ukraine conflict, which could increase Russian energy supplies to Western markets.
Brent crude rose 73 cents, or 1.04%, to $70.61 per barrel after falling 1.5% on Thursday. U.S. West Texas Intermediate crude climbed 72 cents, or 1.08%, to $67.27, following a 1.7% drop.
Meanwhile, gold surged past the $3,000 mark for the first time, driven by safe-haven demand amid economic uncertainty fuelled by President Trump’s tariff policies.
Market data showed that spot gold reached a record of $3,004.86 before retreating 0.2% to $2,981.42 on Friday. #Naira Sees Last Minute Rally as CBN Boost FX Liquidity Oando Edges Higher Slightly after Refinery Win
