In a strategic move to ease pressure on the local currency, the Central Bank of Nigeria (CBN) injected $150 million into the foreign exchange market at the start of the trading week. With the apex bank maintaining its stance on consistent intervention, financial analysts foresee the naira trading within a relatively stable band throughout Q2.
Just last week, the CBN had supplied $635 million to licensed dealer banks as part of its ongoing efforts to improve FX market liquidity. Experts from MarketForces Africa caution that any reduction in dollar inflow may fuel adverse movements in exchange rates, underlining the importance of sustained intervention.
The naira once again came under notable demand pressure at the official market window as foreign investors accelerated their exit from naira-denominated assets.
To mitigate the adverse effects of this heightened demand for U.S. dollars, the apex bank sold $150 million, with exchange rates fluctuating between ₦1,593.20/$ and ₦1,623/$. According to AIICO Capital Limited, the trading session saw the USD/NGN pair move within a broader range of ₦1,593.10/$ to ₦1,630/$.
Latest figures from the CBN indicate that Nigeria’s gross external reserves declined to $38 billion, citing limited inflows and sluggish oil-related forex revenues.
Meanwhile, on the global commodities scene, crude oil prices slipped on Monday, overshadowing positive developments such as U.S. tariff exemptions for electronics and a rebound in China’s March crude imports.
Fears over the prolonged U.S.-China trade tensions stalling global economic growth and curbing fuel demand weighed on the oil market. Brent crude declined by 42 cents, or 0.65%, settling at $64.34 per barrel. U.S. West Texas Intermediate (WTI) crude also dropped 53 cents, or 0.9%, to $60.97 per barrel.
Gold prices, which had earlier surged to record levels, fell by more than 1% as risk appetite improved in light of the tariff reprieve for smartphones and computers. Spot gold dropped by 1.1% to $3,200.11, while U.S. gold futures were down 0.9%, closing at $3,216.20.
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