The naira weakened against the US dollar in the foreign exchange (FX) market despite the Central Bank of Nigeria (CBN) injecting $112 million to stabilize the currency.
A rising demand for the US dollar and other foreign currencies for international transactions eroded the naira’s earlier gains. Analysts believe the CBN will continue to monitor exchange rate movements, especially as Nigeria prepares to settle its COVID-19-related borrowings in 2025.
According to the latest FX market data, the naira depreciated by 0.84% in the official window, closing at ₦1,530.15 per US dollar, down from ₦1,517.24 at the start of Monday’s trading session.
During early trading, dollar liquidity was relatively strong, leading to a calmer market as participants awaited CBN intervention. Transactions occurred at rates between ₦1,520 and ₦1,545, supported by inflows from foreign investors and local businesses, AIICO Capital Limited revealed.
To boost dollar supply, the CBN sold $112.20 million to authorized banks at rates between ₦1,524.5 and ₦1,537. However, despite this intervention, the naira still weakened by 85 basis points (bps) to close at ₦1,530.15.
Meanwhile, Nigeria’s external reserves fell to $38.35 billion due to continuous dollar sales to banks and debt servicing obligations.
Elsewhere, oil prices dipped on Monday amid uncertainty over US tariffs and increased output from OPEC+. However, potential sanctions on Iranian oil exports prevented further losses. Brent crude dropped by 44 cents to $69.92 per barrel, while US West Texas Intermediate (WTI) crude slipped by 40 cents to $66.64.
Gold prices also saw a slight decline as investors took profits following last week’s rally, despite ongoing geopolitical uncertainties. Spot gold fell 0.2% to $2,904.50 per ounce, while US gold futures edged down 0.1% to $2,910.90.
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