The Nigerian naira displayed a mixed trajectory across various foreign exchange windows in April, as the Central Bank of Nigeria (CBN) intervened in the currency market with a $2.48 billion injection aimed at stabilising the local unit, while external reserves edged above the $38 billion threshold.
Data from the apex bank indicated that the official exchange rate declined to N1,606 per U.S. dollar, reflecting the impact of continued FX interventions. The local currency, however, appreciated slightly in the parallel market, closing Tuesday’s session at N1,605 per dollar.
Though the CBN had previously announced plans to halt foreign currency sales to Bureau De Change (BDC) operators, analysts suggested the possibility of an extension to this timeline, citing the current range-bound trading pattern of the naira.
To support liquidity and maintain exchange rate stability, the CBN committed $2.48 billion to the foreign exchange market during the month. Analysts at AIICO Capital Limited noted that FX demand remained elevated, with exporters continuing to serve as the principal supply source.
The naira-dollar pair traded within a narrow band of N1,603.00 to N1,609.50, AIICO Capital stated in its market briefing. On the official market, the naira weakened slightly by six basis points to settle at N1,606.6413 per dollar, amid ongoing efforts by the central bank to stimulate FX inflows through OMO issuances, particularly as oil prices continue to experience fluctuations.
Global oil prices surged nearly 4% on Tuesday, recovering from recent multi-year lows, driven by improving demand indicators in Europe and China, escalating geopolitical tensions in the Middle East, and renewed interest from bargain hunters following OPEC+’s announcement of a production hike.
Brent crude rose by $2.37 (3.9%) to $62.60 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced by $2.42 (4.2%) to $59.55. Gold prices also climbed, reaching a two-week high, buoyed by post-holiday buying from China and lingering concerns about potential U.S. tariffs on pharmaceutical imports.
With the Federal Reserve’s policy decision looming, investor focus remained sharp. Spot gold gained 1.9% to trade at $3,395.94 an ounce after briefly touching a two-week peak at $3,500.05.
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