The Nigerian naira posted modest gains against the US dollar at the official foreign exchange window, buoyed by improving liquidity conditions and a lack of significant pressure on dollar demand.
According to the Central Bank of Nigeria (CBN), the spot exchange rate improved slightly to ₦1533.73 per dollar on Thursday, marking a minor increase from the previous day’s rate of ₦1534.43.
Throughout the day, the local currency traded within a tight band, reaching a high of ₦1535.99 and a low of ₦1531.99, before closing at ₦1535. This trend reflects sustained stability in the official market, driven by increased foreign exchange inflows and steady interventions from the central bank.
Contributing to the liquidity boost were continued inflows from exporters, foreign portfolio investors, and remittances from international oil companies. These factors have provided support to the naira and have helped maintain investor confidence in the FX market.
In contrast, the parallel market told a different story. The naira depreciated slightly, settling at ₦1560 per dollar due to a spike in demand for foreign currency for unofficial purposes. Bureau de Change operators reported limited access to dollar supply from banks, with peer-to-peer trades stepping in to bridge the supply gap—though at rates exceeding the CBN’s targeted band.
This divergence between the official and unofficial market rates has widened the exchange rate gap, raising concerns among investors and analysts alike.
Meanwhile, data from the CBN confirmed that Nigeria’s external reserves climbed to $39.994 billion this week, following 21 new inflows from undisclosed sources. The accumulation of reserves signals improving balance of payments and foreign investor confidence.
On the global commodities front, oil prices fell after initial gains, prompted by reports of an upcoming meeting between Russian President Vladimir Putin and U.S. President Donald Trump—sparking hopes for diplomatic progress in the Ukraine conflict.
Brent crude dropped 48 cents to trade at $66.41 per barrel, while U.S. West Texas Intermediate declined by 54 cents to $63.81 per barrel.
Gold prices, however, rallied to a two-week high amid rising demand for safe-haven assets. Spot gold rose by 0.60% to $3,389.40 per ounce, while U.S. gold futures added $16.03 to close at $3,452.25. Investors continued to hedge against uncertainty triggered by U.S. tariff measures and mixed employment data.
Analysts expect commodity markets to tread cautiously in the coming sessions as market participants await the potential announcement of additional trade tariffs targeting China.
