The naira posted gains against the US dollar on Wednesday at the Nigerian Foreign Exchange Market (NFEM), buoyed by weak dollar demand and improving investor sentiment amid rising external reserves.
According to spot rate data from the Central Bank of Nigeria (CBN), the local currency closed at ₦1,534.82 per dollar—appreciating by more than ₦2 from the previous day’s rate of ₦1,537.09.
Intraday figures showed reduced pressure at the official FX window, with the naira touching a high of ₦1,536.50 compared to the previous day’s ₦1,543. Analysts attributed this to increased forex inflows from exporters and a steady build-up in Nigeria’s foreign reserves, now standing at $40.292 billion, supported by rising crude oil output.
The improved FX liquidity and stronger reserves have bolstered market confidence, keeping the short-term outlook for the naira tilted towards further appreciation.
However, the gap between official and parallel market rates widened as the naira traded at ₦1,550 per dollar in the parallel market—₦15.18 weaker than the official rate. Prior to this divergence, spot rates had converged around ₦1,535.
In the global commodities market, crude oil prices retreated after an unexpected increase in US crude inventories. Brent crude fell by 61 cents to $66.51 per barrel, while US West Texas Intermediate (WTI) declined by 68 cents to $62.49 per barrel. Losses were partly cushioned after the US Treasury Secretary suggested that President Donald Trump might use sanctions in discussions with Russian President Vladimir Putin.
Meanwhile, gold prices climbed as a weaker dollar and lower US Treasury yields fuelled demand for the safe-haven asset. Softer US inflation data reinforced expectations of a Federal Reserve interest rate cut in September, with growing speculation of additional easing measures later in the year.
Spot gold edged up by 0.18% to $3,353.95 per ounce, while US gold futures rose by $2.10 to $3,403.52 per ounce. Analysts expect commodity prices to remain sensitive to key economic indicators due later in the week.
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