The naira weakened at the Central Bank of Nigeria’s (CBN) official foreign exchange market (NFEM), closing at N1,609.63 per dollar on Thursday, as the apex bank moderated its recent aggressive interventions in the FX market.
After months of heavy intervention aimed at stabilizing the naira amid intense market volatility, the CBN has begun to ease its dollar supply in May, as financial conditions show signs of stabilizing. On Thursday, the official spot rate traded as high as N1,614 and as low as N1,608 before closing slightly weaker.
FX liquidity in the interbank market—largely supported by CBN interventions and modest inflows from exporters—helped calm market conditions, reducing volatility and keeping the naira within the central bank’s desired trading band.
Despite the recent stability, the naira still dipped by six naira on the day. Analysts believe the CBN’s ongoing interventions, paired with a gradual recovery in external reserves, will help sustain exchange rate stability in the short term.
According to CBN data, Nigeria’s gross external reserves have risen to $38.096 billion, up from $37.797 billion as of April 25. The increase was driven by seven inflows over a two-week period, with additional support from Open Market Operation (OMO) actions that boosted reserve balances by over $100 million in early May.
Oil and Gold Markets React to Global Sentiment
Meanwhile, global oil prices climbed on Thursday amid renewed optimism surrounding U.S.-China trade talks—an encouraging signal for two of the world’s largest crude consumers.
Brent crude futures rose $1.43, or 2.3%, to settle at $62.55 per barrel, while U.S. West Texas Intermediate (WTI) advanced $1.50, or 2.6%, to close at $59.57.
Conversely, gold prices fell as investor appetite shifted toward riskier assets following President Donald Trump’s announcement of a new trade agreement with the United Kingdom, which raised hopes of further global trade deals.
Spot gold slid 1.9% to $3,301.15 an ounce, while U.S. gold futures dropped 2.5% to $3,306.
Analysts anticipate ongoing volatility in crude oil prices, citing OPEC+’s accelerated supply increases and continuing uncertainty in U.S. foreign policy as key factors influencing the market.
 official foreign exchange market (NFEM), closing at N1,609.63 per dollar on...){kind=link}