The Nigerian naira posted marginal gains against the US dollar in the official foreign exchange window, buoyed by improved external reserve levels and sustained intervention by the Central Bank of Nigeria (CBN).
On the Nigerian Foreign Exchange Market (NFEM), the local currency appreciated by 0.01%, closing at ₦1,599.71 per dollar. This followed the CBN’s continued foreign exchange interventions, which helped boost liquidity in the market.
Data indicated that the apex bank has sold over $1.3 billion in foreign exchange to authorized dealer banks as part of efforts to stabilize the exchange rate within its desired band. This figure is nearly double the volume sold in March, underscoring the central bank’s aggressive stance in defending the naira.
Updates from the CBN’s platform revealed the receipt of new foreign inflows, which bolstered external reserves. On Monday, a total of $41.532 million was added to the external reserves, raising the total balance to $37.839 billion.
In its latest Open Market Operations (OMO) auctions, the CBN continued offering attractive rates in a bid to draw in foreign portfolio investment and mitigate recent capital outflows. The monetary policy authorities have retained competitive spot rates to ensure Nigeria remains appealing to international investors amid shifting global sentiments.
Analysts expect the Central Bank to maintain its benchmark interest rate at 27.50% to prevent capital flight that could result from unattractive returns on naira-denominated assets.
However, data showed that last week, foreign exchange inflows into the Nigerian Autonomous Foreign Exchange Market plummeted by over 93% on a week-on-week basis, declining from $1.42 billion to $735 million.
Breakdown of the inflows indicated that the CBN accounted for 33.47% of total supply, foreign portfolio investors provided 11.99%, non-bank corporates supplied 31.76%, exporters contributed 21.17%, and other sources made up the remaining 1.61%.
On the international commodities front, global oil prices fell by approximately 3% on Tuesday, hitting a two-week low amid rising expectations of increased production from OPEC+ and concerns over potential dampening effects of new US tariffs on global growth and fuel demand.
Brent crude futures slipped by $1.70 or 2.6% to close at $64.16 per barrel, while US West Texas Intermediate (WTI) futures dropped by $1.55 or 2.5% to $60.50 per barrel.
In the precious metals market, gold prices declined nearly 1% as easing trade tensions between the United States and China diminished demand for safe-haven assets. Spot gold traded at $3,314.26 per ounce, while US gold futures dropped by 0.7% to $3,325.
