The naira slipped against the U.S. dollar at both the official and parallel markets on Tuesday, as increased foreign exchange (FX) demand—coupled with limited dollar supply—put pressure on the local currency.
At the Central Bank of Nigeria’s (CBN) official exchange window, the naira depreciated slightly to ₦1,533.10/$1, down from ₦1,531.95/$1 at the previous close. The decline came amid a lull in fresh dollar injections into the market, despite ongoing inflows from foreign portfolio investors and exporters.
The USD/NGN pair traded within a narrow band of ₦1,532.00 to ₦1,534.00 at the official window, with analysts forecasting that the naira may remain within this range in the short term, supported by current FX liquidity levels.
Market analysts also noted a moderate uptick in demand for dollars from corporate entities settling offshore obligations, contributing to the mild depreciation at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, the naira fell more sharply, dropping to ₦1,550/$1 from ₦1,510/$1, driven by rising demand from individuals—particularly those preparing for holidays abroad. The widening gap between official and unofficial rates highlights continued FX pressure in the informal segment.
Meanwhile, global oil prices dipped on Tuesday, as increased supply from OPEC+ and concerns over weakening global demand overshadowed geopolitical tensions stemming from U.S. President Donald Trump’s threat to impose tariffs on India over its Russian oil imports.
Brent crude fell by $1.17 to $67.59 per barrel, while U.S. West Texas Intermediate (WTI) also declined by $1.17 to $65.12 per barrel.
On the commodities front, gold prices climbed to near two-week highs, buoyed by growing market expectations of a potential U.S. interest rate cut. Investors are also closely watching for President Trump’s upcoming decision on Federal Reserve appointments.
Spot gold rose by 0.2% to $3,380.08 per ounce, while gold futures settled at $3,433.77.
