Naira Stabilises as CBN Injects $41m into Forex Market
The naira stabilised around N1549 against the US dollar in the foreign exchange market as the Central Bank of Nigeria (CBN) conducted FX intervention. The CBN injected about $41 million to boost FX inflows in the official market to enhance liquidity following a surge in corporate demand for dollar in the previous day.
The US dollar injected were sold to authorised dealer banks at the rate of N1,546.15 and N1,550. Compared with last month, CBN FX interventions sale has reduced in July.
In May, the authority used $580 million to defend the local currency and exchange rate has continued to trend positively against the dollar. On the other hand, gross external reserves has declined below $38 billion after series of FX outflows.
Today, Oil prices surged nearly 3% on Thursday as the ongoing conflict between Israel and Iran intensified, raising fears of broader instability in the Middle East.
Investor anxiety over possible U.S. involvement in the conflict added further upward pressure on prices. Brent crude futures gained $2.15, or 2.8%, to close at $78.85 per barrel, marking the highest close since January 22. U.S. West Texas Intermediate (WTI) crude rose $2.06, or 2.7%, to settle at $77.20.
Meanwhile, gold prices held mostly steady as heightened geopolitical tensions counterbalanced the impact of the Federal Reserve’s hawkish policy signals. Spot gold edged down 0.1% to $3,365.79, while U.S. gold futures dropped 0.7% to $3,382.80.
While any oil price spikes may prove short-lived, sustained elevated levels could worsen tariff-driven economic pressures and dampen demand. However, prices are likely to retreat once geopolitical tensions ease, as the conflict premium dissipates. CIIN Launches Insurance Week to Boost Awareness
