The naira depreciated to ₦1,456.20 per dollar at the official market on Tuesday as foreign exchange demand continued to outstrip supply in the Nigerian Foreign Exchange Market, NFEM.
Trading activity was affected by limited dollar inflows from exporters, non-bank corporates and foreign portfolio investors, while the Central Bank of Nigeria did not intervene to boost supply during the session.
Official market data showed that pressure from unmet demand pushed the naira weaker against the dollar. According to AIICO Capital Limited, the currency lost ₦4.38 to close at ₦1,456.20 per dollar, with transactions conducted within a range of ₦1,454.00 to ₦1,457.00 per dollar.
Despite the depreciation, market participants expect the naira to close the year relatively stable, with ₦1,500 per dollar viewed as a worst-case scenario, largely due to anticipated CBN interventions.
The apex bank has maintained a positive outlook for foreign exchange support through 2025, signalling its intention to stabilise the local currency amid improving external reserves.
Latest figures showed Nigeria’s gross external reserves rose to $45.47 billion, representing an 11.24 per cent year-to-date increase and a day-on-day gain of $32.42 million. MarketForces Africa also reported that the CBN disclosed at a forum that total external balances had climbed to $46.7 billion, although official reserve data has yet to reflect that figure.
In the global commodities market, oil prices fell below $60 per barrel on Tuesday, the lowest level since May, as expectations of a possible Russia-Ukraine peace deal raised the prospect of eased sanctions.
Brent crude declined by $1.51, or 2.49 per cent, to $59.05 per barrel, while U.S. West Texas Intermediate dropped by $1.28, or 2.26 per cent, to $55.39 per barrel.
Meanwhile, gold prices edged higher after U.S. labour data showed a rise in unemployment, strengthening expectations of interest rate cuts by the U.S. Federal Reserve and weakening the dollar.
Spot gold rose by 0.08 per cent to $4,306.22 per ounce, while U.S. gold futures gained 0.01 per cent to $4,335.45 per ounce. Analysts at AIICO Capital said market sentiment is expected to remain cautious to bearish, with oil prices still influenced by ongoing geopolitical risks.
