The naira appreciated further on Wednesday after Nigeria’s foreign reserves rose to $42.669 billion, marking the highest level recorded since September 2019, up from $42.589 billion at the beginning of the week.
This development came after the local currency had experienced consistent depreciation, largely driven by elevated demand for the U.S. dollar in the official foreign exchange (FX) market amid shrinking liquidity.
The Central Bank of Nigeria (CBN)’s latest FX data revealed that total foreign exchange sales to authorised dealer banks in September stood at $150 million, a measure aimed at balancing the widening demand-supply gap. Analysts, however, anticipate a decline in dollar sales this October.
Following improved dollar supply, the naira strengthened by 0.15%, closing at ₦1,471.03 per dollar at the official market window. The day’s trading range was between ₦1,464.42 and ₦1,475.00, with the spot rate peaking at ₦1,475 before settling lower.
Similarly, the naira appreciated 0.17% in the parallel market, ending the day at ₦1,486 per dollar. The foreign reserves expansion—an increase of around $18 million—came amid fluctuating global oil prices.
In global commodity markets, oil prices edged lower as traders weighed potential disruptions to Russian crude exports to India. Brent crude fell by $1.02 or 1.65% to $60.89 per barrel, while U.S. West Texas Intermediate (WTI) slipped by 54 cents or 0.93% to $57.30 per barrel.
Conversely, gold prices soared for the fourth consecutive session as concerns over U.S.-China trade tensions and a possible U.S. government shutdown spurred safe-haven demand. Spot gold climbed 1.48% to $4,285.56 per ounce, while U.S. gold futures advanced 1.84% to $4,300.99 per ounce.
Experts expect commodities to remain buoyant in the near term, supported by strong gold demand and oil’s potential rebound as global trade dynamics evolve.
