The Nigerian naira slipped against the U.S. dollar on Wednesday amid a modest uptick in demand for foreign payments, as the Central Bank of Nigeria (CBN) continued its intervention to stabilize the exchange market. The gap between the official and parallel market rates narrowed to near zero, eliminating room for speculative trades.
Data from the CBN shows the official FX rate settled at ₦1,534.52/$1, up from ₦1,533.18/$1 the previous day. Intra-day trading hit a high of ₦1,535.50, while the lowest bid closed at ₦1,532/$1. At the close, the rate stood at ₦1,537/$1.
The local currency has been trading within a relatively tight band of ₦1,530 to ₦1,540 in July, supported by CBN’s dollar sales amid a 25% decline in forex inflows last week. In the parallel market, the naira also settled at ₦1,535/$1, as speculative activity diminished.
Analysts say the CBN’s aggressive stance—supporting commercial banks and Bureau de Change operators—has made it unprofitable to bet against the naira. Additionally, investor confidence is being bolstered by improved FX liquidity and recent reforms in monetary policy.
Nigeria’s gross external reserves climbed to $39.27 billion on Tuesday, representing a five-month high and a daily gain of $124.42 million, largely driven by steady FX inflows.
Meanwhile, global oil prices rallied over 1% as geopolitical tensions flared. Brent crude rose by $0.84 to $73.35 per barrel, while U.S. West Texas Intermediate gained $0.92, settling at $70.13. Conversely, gold slipped 1.1% to $3,289.66/oz, while U.S. gold futures dropped 1.4% to $3,336, as stronger U.S. economic data diminished rate cut hopes.
