The Nigerian naira weakened across foreign exchange markets as the Central Bank of Nigeria (CBN) scaled back its interventions. The naira’s spot FX rate declined amid reduced FX sales to banks during the CBN’s auction holidays, with transactions occurring between N1,535 and N1,551 per dollar.
Market analysts observed that despite a rise in Nigeria’s external reserves, now nearing $41 billion, the CBN has limited its FX sales to banks. Consequently, the naira depreciated to close at N1,541.06, reflecting an 11-basis-point decline from the previous day.
Investment analysts expect the naira to stabilize, driven by improved FX inflows, the introduction of electronic matching systems, and increased foreign portfolio investments. CardinalStone Securities projects the naira’s fair value at approximately N1,720.88/$ by 2025, supported by rising FX reserves and a positive current account balance.
In the parallel market, the naira weakened further, losing N20 to close at N1,660 per dollar, spurred by renewed demand pressures.
Global Market Update: Oil and Gold Prices
Oil prices edged higher, bolstered by expectations of robust winter fuel demand, despite concerns over U.S. fuel stockpiles and broader economic challenges. Brent crude traded at $76.56 per barrel, while West Texas Intermediate (WTI) stood at $73.64.
Meanwhile, gold prices retreated after nearing a four-week high, with traders booking profits ahead of the U.S. jobs report. The precious metal traded at approximately $2,659.62 per ounce as markets await insights into the Federal Reserve’s interest rate strategy for 2025.
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