The naira strengthened further against the US dollar last week as improved liquidity conditions and renewed intervention by the Central Bank of Nigeria (CBN) helped stabilise demand-supply dynamics across the official FX market.
The local currency gained nearly N10 week-on-week, closing at N1,446.74 per dollar on Friday, buoyed by steady inflows from Foreign Portfolio Investors (FPIs), improved oil receipts, and CBN’s sustained FX sales.
Cowry Asset reported that exchange rate movements were notably more orderly compared to the previous week, with bid-offer spreads narrowing and liquidity improving across key trading windows. The naira traded within a tighter band in early sessions, hovering between N1,441 and N1,452 per dollar, before firming to a mid-week range of N1,436.50–N1,442.
CBN intervention played a major role, with total FX sales reaching $186 million, supported by additional inflows from corporates and offshore investors.
Despite lingering demand from importers, pressures eased as market participants adjusted to improved liquidity conditions. Analysts noted that the renewed confidence was partly underpinned by Nigeria’s rising external reserves, which climbed for the nineteenth consecutive week.
Global commodity movements also influenced market sentiment. Crude oil prices slipped slightly on Friday but still recorded weekly gains, with investors closely monitoring geopolitical tensions surrounding the Russia–Ukraine negotiations and the upcoming OPEC+ meeting, where members are expected to maintain current output levels.
Brent crude settled at $62.38 per barrel, while West Texas Intermediate closed at $58.55. Gold prices also soared as investors anticipated a US Federal Reserve rate cut, pushing spot gold 4.05% higher to $4,230.63 per ounce, with silver hitting a new record.
Analysts cautioned that while FX pressures have moderated, long-term stability will depend on sustained inflows, improved oil revenue, and stronger macroeconomic fundamentals. Market projections suggest crude prices may remain under pressure amid a forecasted global surplus of nearly 2 million barrels per day in 2026.
 helped stabilise demand-supply dynamics across the official FX market.){kind=link}