The naira recorded a mild depreciation against the US dollar at the official foreign exchange window, reflecting continued tightness in dollar liquidity despite ongoing intervention by the Central Bank of Nigeria (CBN).
Data from the CBN’s daily foreign exchange update showed that the local currency softened by three basis points as limited inflows from foreign portfolio investors, exporters, and non-bank corporates continued to weigh on supply conditions in the regulated market.
At the close of trading, the naira settled at ₦1,455.50 per dollar at the official FX window. In contrast, the parallel market recorded a modest appreciation, with the exchange rate strengthening by 0.14 percent to ₦1,471 per dollar, highlighting the divergent dynamics between the formal and informal currency segments.
As a result, the exchange rate spread between both markets narrowed further to ₦16, reinforcing market expectations of gradual convergence as remittance inflows continue to support dollar availability in the parallel market.
Despite the official market pressure, international payments volumes exceeded dollar inflows, even as the apex bank maintained its intervention strategy aimed at stabilising the currency and preserving confidence in the FX framework.
Nigeria’s external reserves were last reported at $45.4 billion, reflecting a decline of 0.30 percent or $148.41 million. Analysts at Anchoria Securities Limited noted that although reserves have edged lower, the current level remains relatively robust and is expected to remain stable in the near term.
According to the analysts, this outlook is underpinned by improved foreign inflows from oil exports, increased participation by foreign portfolio investors, and continued FX management by the CBN.
In the global commodities market, crude oil prices fell sharply, dropping below the $60-per-barrel threshold for the first time since May. The decline followed renewed optimism around a potential peace agreement between Russia and Ukraine, which has raised expectations that some sanctions on Russian oil exports could be eased.
Brent crude fell by $1.51, or 2.49 percent, to $59.05 per barrel, while US West Texas Intermediate declined by $1.28, or 2.26 percent, to $55.39 per barrel.
Meanwhile, gold prices edged higher as a softer US labour market report showed an increase in unemployment, reinforcing expectations that the US Federal Reserve could begin cutting interest rates. The data weakened the dollar index, providing support for bullion. Spot gold rose by 0.08 percent to $4,306.22 per ounce, while US gold futures inched up by 0.01 percent to $4,335.45 per ounce.
Market analysts expect cautious to bearish sentiment to persist across global markets in the near term, with oil prices remaining sensitive to geopolitical developments, while gold continues to attract safe-haven demand.
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