The naira experienced a mild depreciation against the US dollar on Monday at the Nigerian Foreign Exchange Market (NFEM), as the Central Bank of Nigeria (CBN) continued its regular intervention through dollar sales.
In April alone, the apex bank has injected over $1.3 billion into the market to stabilise the local currency. Analysts note that the CBN has intensified its aggressive foreign exchange interventions to relieve pressures on the FX market.
By the close of business, the naira eased by two basis points, settling at N1,599.9452 per dollar, compared to Friday’s closing rate of N1,599.54.
During trading hours, the naira-dollar exchange rate fluctuated within the band of N1,596 to N1,603.50 at the official window, underpinned by robust foreign exchange inflows from the central bank.
Market watchers said that the CBN’s persistent interventions are expected to keep the naira relatively stable in the near term, limiting the risk of sharp fluctuations.
Meanwhile, oil prices declined by over $1 per barrel on Monday, driven by concerns about weakened demand amid escalating trade tensions between the U.S. and China.
Brent crude futures shed $1.09, or 1.63%, to settle at $65.78 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $1.15, or 1.82%, to $61.87 a barrel.
Gold prices, after initial losses, bounced back on the back of bargain hunting, as investors tracked developments in the U.S.-China trade negotiations and awaited critical economic indicators.
Spot gold climbed 0.4% to $3,332.59 per ounce after an early session drop of up to 1.8%, while U.S. gold futures advanced by 1.4% to reach $3,344.00, signalling renewed demand for safe-haven assets amid ongoing market uncertainty.
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