The Nigerian naira appreciated against the US dollar in the official foreign exchange market, driven by improved dollar supply and strong liquidity inflows.
According to figures released by the Central Bank of Nigeria (CBN) on Tuesday, the official spot exchange rate rose by 67 basis points to close at ₦1,448.2050 per dollar, reflecting a notable appreciation from the previous session.
During the trading day, the exchange rate fluctuated between ₦1,445.00 and ₦1,456.00 per dollar before settling at ₦1,448.2050. Market analysts attributed the gain to sustained foreign exchange inflows and moderated demand pressures.
Meanwhile, Nigeria’s external reserves held steady at $42.87 billion, despite ongoing discussions to increase external borrowing. The reserves figure comes as oil prices extended their decline for a third consecutive session due to geopolitical uncertainties and anticipated output adjustments by OPEC+.
Brent crude fell by 54 cents, or 0.83%, to $64.36 per barrel, while US West Texas Intermediate (WTI) dropped by $1.23, or 2.01%, to close at $60.08.
Similarly, gold prices weakened to a three-week low as fading optimism over US–China trade negotiations reduced demand for the metal. Spot gold fell by 1.09% to $3,954.91 per ounce, and US gold futures dipped by 1.06% to $3,970.24 per ounce.
In a market commentary, AIICO Capital projected a cautious outlook for the next trading session, noting that “oil prices are likely to remain under pressure due to oversupply concerns, while gold could see modest recovery supported by expectations of a softer US dollar and potential rate cuts.”
