Naira Strengthens to N1521/$ on Robust U.S. Dollar Supply
The naira strengthened at the Nigerian foreign exchange market (NFEM) amidst rising external reserves, growing confidence in the currency market and the Central Bank of Nigeria (CBN) unending intervention.
The multivariate supporting conditions have helped the local currency trading within the target range, and a slide US dollar pressure often trigger immediate FX intervention from the authority.
FX update from the CBN showed that the naira appreciated 0.30% due to stronger dollar supply at the official window. The local currency traded between ₦1,518.00 and ₦1,525.00 before settling at ₦1,521.46.
The CBN’s gross reserves increased to $41.46 billion as of 2 September 2025, rising $38.52 million from the prior day. FX traders, and analysts anticipate that the naira is likely to continue strengthening due to improved US dollar supply and rising reserves.
Elsewhere, oil prices fell more than 2% on Wednesday as markets braced for this weekend’s OPEC+ meeting, where producers are expected to weigh another output hike for October.
Brent crude dropped $1.54, or 2.23%, to settle at $67.60 per barrel, while U.S. West Texas Intermediate slipped $1.62, or 2.47%, to $63.97.
Meanwhile, gold extended its record-breaking rally, boosted by weaker U.S. jobs data that strengthened bets on a Fed rate cut later this month. Spot gold rose 1.2% to $3,576.59 after touching a fresh high of $3,578.50, while U.S. futures gained 1.2% to $3,635.50.
“If output is raised in line with new quotas, we see the market moving into a sizeable surplus from September 2025 through 2026, with inventories building unless countered by renewed restraint”, AIICO Capital Limited said. CBN Offers 26.44% Interest Rate on 84-Day OMO Bills
