The Nigerian naira closed at N1,652.25 per dollar at the official market on Friday, marking a slight depreciation of N2.05 (0.12%) from Thursday’s exchange rate of N1,650.20. This decline comes as foreign exchange turnover increased significantly, with $296.63 million traded, up from $214.73 million the previous day, according to data from the FMDQ Exchange platform.
At the Investors’ and Exporters’ (I&E) window, the naira traded between N1,699.00 and N1,620.00 per dollar, showcasing fluctuations amidst market dynamics.
In global commodities, crude oil prices are on track for a weekly decline. Brent crude traded at $71.58 per barrel, while WTI stood at $67.61. Despite this, Nigeria’s external reserves benefited from an uptick in crude oil production, with the Nigerian National Petroleum Corporation (NNPC) achieving a production level of 1.8 million barrels per day. Foreign reserves rose by $117.98 million to $40.24 billion, reflecting the impact of steady oil revenue inflows.
On the forward market, the naira held steady in one- and three-month contracts, while rates for six- and 12-month contracts appreciated slightly, indicating sustained investor confidence in the naira’s long-term prospects.
Meanwhile, gold prices plunged to $2,566.90 per ounce, marking their largest weekly drop in over three years. The strengthening of the U.S. dollar, fuelled by expectations of less aggressive interest rate reductions by the Federal Reserve, has diminished gold’s appeal as a safe-haven asset.
The interplay of global economic trends and local forex dynamics continues to shape Nigeria’s financial landscape, keeping stakeholders on edge as they navigate the challenges and opportunities of the currency market.
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