Naira Skids over FX Demand Pressure, Foreign Reserves Rise
The naira skids against the dollar at the Nigerian foreign exchange market (NFEM), reflecting a mild pressure coming from increased corporate demand for foreign currencies.
The Central Bank of Nigeria (CBN) fx update revealed that the naira was quoted at N1525.98 per greenback, showing that the local currency value declined by more than N5 from N1520.74 the previous day.
The Apex Bank maintained distance, with no fx interventions in recent times. In the first half, the authority was aggressive, supporting the naira with about $5 billion in six months straight. In its note, AIICO Capital Limited said the interbank NFEM remained relatively liquid, with the USD/NGN pair trading between $/₦1,520.00 and $/₦1,531.00.
The Naira weakened by 34 bps to close at $/₦1,525.9800 amidst fresh inflows into the nation’s foreign reserves. CBN data revealed that gross FX reserves inched higher to $37.32 billion, a day-on-day increase of about $47.11 million.
The exchange rate should hold steady in the near term, AIICO Capital Limited emphasized, saying the current market conditions support stability at present levels.
Elsewhere, oil prices fell by around 2% on Thursday, as investors weighed the potential impact of U.S. President Donald Trump’s tariffs on global economic growth. Brent crude futures were down $1.42, or 2.02%, at $68.77 a barrel, while U.S. West Texas Intermediate crude fell $1.61, or 2.35%, to $66.77 a barrel.
Gold prices were little changed on Thursday as a stronger U.S. dollar offset the impact of U.S. President Donald Trump’s latest tariffs in driving buying by investors seeking shelter from geopolitical risk.
Spot gold was up 0.2% to $3,318.56 per ounce. U.S. gold futures gained 0.2% to $3,328.30. Analysts said the market will likely stay in wait-and-see mode due to erratic policymaking and the administration’s flexible approach to tariffs. #Naira Skids over FX Demand Pressure, Foreign Reserves Rise Nigerian Bonds Yield Falls, Lower Rates on TBills Signals Rally
