The Nigerian naira recorded a marginal appreciation against the U.S. dollar in the foreign exchange (FX) market following another round of intervention by the Central Bank of Nigeria (CBN), which sold an additional $149.4 million to authorised dealer banks in an effort to curb depreciation pressures.
Demand for the U.S. dollar remains elevated, particularly from foreign investors seeking to exit the domestic financial market. In response, the apex bank reiterated its commitment to boosting foreign currency liquidity in the official window.
As part of this initiative, the CBN intervened in the Nigerian autonomous FX market, executing a sale of $101.2 million at exchange rates ranging from ₦1,603.15 to ₦1,615.00 per dollar. A further $48.2 million was sold at rates between ₦1,603.11 and ₦1,620.00.
This intervention follows the earlier sale of $124 million earlier in the week, as the market continues to grapple with the impact of oil market volatility and the imposition of higher tariffs on Nigerian exports.
Currency analysts reported that the naira-dollar exchange rate traded within a band of ₦1,589 to ₦1,634, with the local currency appreciating by 4 basis points to close at ₦1,611.5535 per dollar. Analysts anticipate continued CBN interventions aimed at stabilising the FX market, particularly as heightened global risk aversion leads foreign portfolio investors to increase dollar demand.
Meanwhile, in the global commodities space, oil prices slid by over a dollar per barrel on Tuesday, touching four-year lows amid persistent recession fears driven by escalating trade tensions between the United States and China. These concerns eclipsed gains recorded in equity markets.
Brent crude fell by $1.47 or 2.29%, to settle at $62.74 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude declined by $1.26 or 2.08% to $59.44. On the other hand, gold prices surged above the $3,000 mark per ounce, supported by a weaker U.S. dollar and growing global economic uncertainties.
Spot gold increased by 0.8% to $3,007.69 as of late morning trading, recovering from a three-week low recorded on Monday. U.S. gold futures also advanced by 1.6% to $3,021.90, as investors continued to seek safe-haven assets amid ongoing market volatility.
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