Nigeria’s local currency, the naira, maintained stability in the official foreign exchange market on Thursday, trading within the N1,546.15–N1,550 range against the U.S. dollar, following a liquidity injection by the Central Bank of Nigeria (CBN).
The apex bank supplied approximately $41 million to authorized dealer banks to ease pressure on the forex market. This intervention came amid heightened demand for dollars from corporates and businesses seeking to meet operational and import obligations.
Compared to May, when the CBN injected $580 million to defend the naira, the June intervention represents a significant scale-down. However, analysts note that the reduced intervention is strategic and reflects improvements in FX inflows from other channels.
Despite the fresh injection, Nigeria’s gross external reserves dipped below the $38 billion threshold, largely due to ongoing forex outflows. The reserve depletion remains a concern for long-term currency stability.
Meanwhile, global crude oil prices surged on Thursday due to escalating hostilities between Israel and Iran, stoking fears of a broader Middle East crisis that could disrupt oil supplies. Brent crude closed at $78.85 per barrel, up $2.15 or 2.8%, while West Texas Intermediate (WTI) climbed $2.06 to settle at $77.20 per barrel.
The rally in oil prices was driven by investor concerns over potential U.S. intervention in the regional conflict, which could amplify geopolitical risk in oil-exporting territories.
Gold prices remained relatively unchanged as the safe-haven asset was buoyed by geopolitical tensions but tempered by hawkish signals from the U.S. Federal Reserve. Spot gold slipped 0.1% to $3,365.79, while U.S. gold futures dropped 0.7% to $3,382.80.
Market analysts suggest that while energy prices may remain volatile in the short term, the geopolitical risk premium is likely to ease once tensions in the Middle East subside.
