The Nigerian naira appreciated significantly in the foreign exchange market on Wednesday, strengthening by ₦9 to close at ₦1,520.00 per U.S. dollar. This improvement comes on the back of fresh dollar inflows that boosted liquidity levels across the market
According to traders, the naira traded within the range of ₦1,520 to ₦1,530 against the greenback. Market sentiment turned positive after Nigeria’s external reserves registered a recovery, breaking away from a previously sustained downward trend. The Central Bank of Nigeria (CBN) reported a rise in the country’s gross external reserves to $37.282 billion, following two notable dollar inflows from undisclosed sources.
Spot foreign exchange data released by the CBN showed that the official rate closed at ₦1,520.7490 per dollar, improving from the previous day’s ₦1,529.22.
Despite limited intervention by the CBN in the forex market during July, the naira has continued to hold strong. Contributing to the reduced pressure on the FX market is the local supply of refined petroleum products from the Dangote refinery, which has significantly lowered the country’s foreign currency demand for imports.
Improved forex sentiment has also been driven by fairer exchange rate valuation, with increased participation from offshore investors in the central bank’s open market operations (OMO). Many Nigerian investment bankers have now adopted a bullish stance on the naira, projecting an exchange rate between ₦1,560 and ₦1,700 per dollar by year-end, assuming no major surge in forex demand.
On the global front, crude oil prices edged higher, with Brent crude rising 38 cents to $70.53 per barrel, supported by strong U.S. gasoline consumption and rising geopolitical tensions affecting Red Sea shipping routes. U.S. West Texas Intermediate (WTI) crude also saw an increase of 43 cents, trading at $68.76 per barrel.
Meanwhile, gold prices experienced marginal gains, climbing 0.3% to $3,309.24 per ounce, although further growth was tempered by a strengthening U.S. dollar. Analysts say the ongoing tight supply levels in the oil market—despite increased output—continue to reflect robust global demand.
