The Central Bank of Nigeria (CBN) returned to the foreign exchange scene this week with measured interventions that helped moderate pressure on the naira, even as rising dollar demand tested liquidity in the Nigerian Foreign Exchange Market (NFEM).
On Monday, the apex bank sold $80 million to commercial banks, helping to stabilize the spot exchange rate within the ₦1,527.05–₦1,530.70 range. Analysts at AIICO Capital noted that the early-week injection was instrumental in anchoring expectations amid uneven dollar supply.
By midweek, the market stabilized, requiring no further action from the CBN as exchange rates held steady between ₦1,527 and ₦1,532.50 per dollar. However, by Thursday, a spike in dollar demand caused a short-lived rally in the exchange rate, which climbed to as high as ₦1,536/$.
In response, the CBN returned to the market with additional forex sales on Friday, easing the pressure and improving liquidity. As a result, trading concluded the week within a narrow range of ₦1,528.00 to ₦1,536.50.
Despite some fluctuations, the naira posted a marginal 13.6 basis points depreciation week-on-week, ending at ₦1,532.34/$ at the official market.
Looking ahead, analysts predict that the local currency will likely maintain its current range, buoyed by improved liquidity. However, they caution that the market is closely watching for signals from the upcoming Monetary Policy Committee (MPC) meeting, which could influence currency movements.
Meanwhile, global commodity markets remained volatile. Brent crude fell 24 cents to settle at $69.28 per barrel, while U.S. West Texas Intermediate slipped 20 cents to $67.34, as investors reacted to mixed U.S. economic data and new EU sanctions on Russia.
Gold prices gained 0.4% to trade at $3,351.18 per ounce, recovering from the previous day’s slump, as global uncertainty and a weaker dollar boosted demand for safe-haven assets. Platinum prices pulled back after reaching decade highs, while analysts warned that proposed tariffs could send U.S. trade levies beyond Great Depression-era levels, sparking further inflationary concerns.
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