The Nigerian naira recorded a significant uptick against the US dollar in the official foreign exchange market, bolstered by enhanced liquidity from major international oil producers and foreign portfolio inflows.
According to the Central Bank of Nigeria (CBN), the local currency strengthened by 85 basis points to settle at ₦1,536.0817 per dollar on Thursday, buoyed by improved dollar availability and subdued demand.
Financial advisory firm AIICO Capital Limited reported that the appreciation stemmed from steady FX supply provided by International Oil Companies (IOCs), domestic sources, and global investors showing renewed confidence in the Nigerian economy.
“This upward momentum is being driven by a more optimistic risk sentiment in the international financial markets,” AIICO stated. Trading sessions observed the USD/NGN pair fluctuating within a band of ₦1,534.00 to ₦1,549.50, indicating strong market activity.
Meanwhile, CBN’s latest figures revealed that Nigeria’s gross external reserves currently stand at $37.41 billion, reflecting a minor decline of $54.09 million. Nonetheless, analysts forecast continued exchange rate stability in the near term, assuming current trends persist.
Global oil markets also showed signs of bullishness on Thursday. Crude prices edged higher due to declining U.S. inventories, which typically rise during the summer driving season.
Brent crude closed marginally higher at $67.73 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 32 cents to settle at $65.24, as market participants digested recent demand signals and geopolitical developments.
Gold markets remained relatively flat, with spot gold holding steady at $3,333 per ounce. Market watchers attributed this to investor caution ahead of a crucial U.S. inflation report and easing Middle East tensions.
According to analysts, while geopolitical risks continue to simmer, the likelihood of a major oil price spike remains limited due to diplomatic moves—such as recent ceasefire efforts spearheaded by the U.S. government.
