The Nigerian naira appreciated marginally against the US dollar in the official foreign exchange market on Wednesday, following fresh dollar sales by the Central Bank of Nigeria (CBN) aimed at enhancing market liquidity.
According to figures from the apex bank, the naira gained 0.02%, ending the trading session at N1,602.30 per dollar. Despite ongoing interventions by the CBN, the spot foreign exchange rate continues to exhibit fluctuations.
The CBN re-entered the foreign exchange market, supplying $50 million at rates ranging between N1,599.05 and N1,604 per dollar. In contrast, the parallel market recorded a depreciation in the local currency, with the naira sliding to N1,620 per dollar.
Trade data from the Nigerian Foreign Exchange Market revealed transactions within a range of $/₦1,591.23 to $/₦1,606. The domestic currency appreciated slightly at the close of the session, rising by 2 basis points to settle at $/₦1,602.3043.
Meanwhile, Nigeria’s gross external reserves were reported at $37.88 billion, amid fluctuating global crude oil prices. Crude prices dropped by around 3% on Wednesday, following reports that OPEC+ might advance its timeline for production increases as early as June.
However, the market selloff was tempered by news suggesting that U.S. President Donald Trump might consider reducing tariffs on Chinese imports.
Brent crude declined by $1.92, or 2.85%, to close at $65.52 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude dropped by $1.99, or 3.13%, to settle at $61.68 per barrel. Gold prices also fell sharply, continuing losses after reaching a historic high the previous day.
Investor optimism grew on the back of President Trump’s reassurances that he would not remove the Federal Reserve Chairman, coupled with easing tensions with China. These developments dampened demand for safe-haven assets. Spot gold dropped 3% to $3,281.60 per ounce, while U.S. gold futures fell 3.7% to close at $3,294.10 per ounce.
