The Nigerian naira showed mixed performance against the US dollar in both the official and parallel markets, following fresh dollar injections by the Central Bank of Nigeria (CBN).
At the official market, the exchange rate remained steady at ₦1,538.68 per US dollar, the same as the previous trading session. This stability was largely due to the CBN’s intervention, as it sold foreign exchange (FX) to authorized dealer banks to curb further depreciation of the naira.
However, in the parallel market, the exchange rate worsened, with the naira trading at ₦1,590 per dollar. This was due to limited dollar supply, as Bureau de Change (BDC) operators only received $25,000 in weekly allocations—insufficient to meet the rising demand.
Despite this, the naira’s value at the official market was maintained as the CBN injected over $164.95 million into the forex market at rates ranging between ₦1,543.09 and ₦1,556 per dollar, according to an investor note by AIICO Capital Limited.
During the trading session, the USD/NGN pair fluctuated between ₦1,543 and ₦1,570 per dollar. Analysts believe the CBN will continue to intervene by boosting liquidity in the forex market to prevent further depreciation of the naira.
Oil Prices Drop as Market Faces Global Uncertainty
Meanwhile, crude oil prices declined as investors evaluated global economic risks, particularly concerns over trade disputes between the United States and other countries, which could weaken global demand.
Brent crude fell by $0.54 (0.8%) to $70.41 per barrel.
US West Texas Intermediate (WTI) crude dropped $0.63 (0.9%) to $67.05 per barrel. At the same time, gold prices surged to an all-time high, approaching the $3,000 per ounce mark. The rally was fueled by market uncertainty and expectations that the US Federal Reserve may ease monetary policy. Spot gold rose by 1.6% to $2,977.36 per ounce.
Experts predict that global oil supply may exceed demand by 600,000 barrels per day (bpd) this year, primarily due to increased US production. Meanwhile, oil demand is expected to grow by 1.03 million bpd, mainly driven by Asia, particularly China. However, this growth projection was lowered by 70,000 bpd compared to last month’s estimates.
