The Nigerian naira weakened against the US dollar in the foreign exchange (FX) market as demand pressures intensified. According to spot FX data from the FMDQ platform, the naira depreciated by 0.13%, closing at N1,536.58 per US dollar in the official market. Market activity indicated trades were conducted within a range of N1,500 to N1,550 per US dollar, highlighting significant FX demand in the official window.
The market expects the Central Bank of Nigeria (CBN) to sustain efforts to boost liquidity and ensure exchange rate stability. On the parallel market, the exchange rate settled at N1,640 per US dollar, aided by a temporary lifeline that allowed Bureau de Change operators to purchase $25,000 from banks at the official rate.
In January, the CBN reported additional inflows, slightly raising gross external reserves to $40.884 billion. Analysts believe that increased oil production and the resumption of operations at two refineries could significantly strengthen FX inflows from oil sales, improving the country’s external reserves in the first quarter of 2025.
Global Commodities Update
In the global commodities market on Tuesday, oil prices remained steady at their highest levels since mid-October. This stability was driven by colder weather boosting demand and the anticipation of stricter sanctions on oil exports from Iran and Russia. Brent crude traded at $77.41 per barrel, while WTI crude stood at $74.91 per barrel.
Conversely, gold prices declined as U.S. Treasury yields rose, following the Federal Reserve’s indications of a slower pace of interest rate cuts in 2025. Gold was trading at approximately $2,632.47 per ounce, as investors awaited economic data to provide further clarity on the outlook.
 market as demand pressures intensified. According to spot....){kind=link}