The naira appreciated by 0.29% against the US dollar on Thursday, closing at ₦1,586.15 at the Nigerian Foreign Exchange Market, up from ₦1,590 the previous day, according to official data from the Central Bank of Nigeria (CBN).
The currency also saw slight gains in the parallel market, trading at ₦1,615 per dollar amid growing speculation that the CBN will discontinue dollar sales to Bureau De Change operators at the official rate starting May 2025.
The rebound in the naira was largely attributed to improved dollar supply, bolstered by the CBN’s continued intervention in the market. The USD/NGN pair traded within a narrow band of ₦1,584.50 to ₦1,590.70 during the session.
Market analysts noted that with sufficient foreign inflows and moderate demand from corporates, the naira is expected to remain relatively stable in the near term, barring any external shocks.
Meanwhile, in global commodities, oil prices reversed earlier gains on Thursday following a bearish outlook from the International Energy Agency (IEA), which warned of softening demand from China—the world’s largest oil importer.
Brent crude dropped by 60 cents to $64.30 per barrel, while U.S. West Texas Intermediate (WTI) declined by 67 cents to $61.17.
Traders also kept a close watch on geopolitical developments, including the possibility of fresh U.S. sanctions on Russian crude, as well as the upcoming OPEC+ decision on July production levels.
Earlier in the week, crude prices had climbed after a U.S. court ruled that former President Donald Trump had overstepped his authority in imposing sweeping tariffs—boosting risk appetite. However, the ruling excluded specific sectoral tariffs and may be subject to appeal.
Looking ahead, analysts anticipate OPEC+ will proceed with another 411,000-barrel-per-day production hike, continuing its phased supply expansion strategy through the third quarter of the year, as the group seeks to protect market share.
