The naira extended its rally in the foreign exchange (FX) market as increased dollar supply outpaced demand for foreign transactions. Data from the FMDQ platform showed that the spot FX rate appreciated by 1.04%, settling at ₦1,494.03 per US dollar in the official market.
Market stability has been attributed to growing investor confidence, driven by recent foreign exchange reforms that ended capital controls and introduced a more liberalised system.
On Thursday, the Nigerian Foreign Exchange Market (NFEM) maintained relative stability, with trading rates fluctuating between ₦1,490.00 and ₦1,515.00 per dollar. This steadiness has been supported by successive FX interventions from the Central Bank of Nigeria (CBN) and increased dollar inflows.
Liquidity in the FX market also received a boost as the CBN continued selling dollars to banks. Bureau de Change (BDC) operators have benefited from these interventions, particularly following the apex bank’s extension of temporary FX purchases from Nigerian banks to facilitate broader exchange rate recalibration.
In the parallel market, the naira also strengthened, appreciating by 1.66% to ₦1,510.00 per dollar, according to a report by investment banking firm CardinalStone Limited. However, Nigeria’s external reserves have dipped below $40 billion amid aggressive FX sales, with analysts speculating that the CBN may be drawing from reserves to stabilise the currency.
Meanwhile, global oil prices remained steady after touching a one-week high in the previous session. Brent crude gained 50 cents to $76.54 per barrel, while West Texas Intermediate (WTI) rose by 46 cents to $72.71 per barrel. Market sentiment was dampened by industry reports of rising U.S. crude inventories.
Gold prices, on the other hand, surged to a record high as escalating trade tensions—exacerbated by U.S. President Donald Trump’s tariff threats—drove demand for safe-haven assets. Spot gold remained stable at $2,930.19 per ounce, after hitting an all-time high of $2,954.69 earlier, marking its tenth record high of the year.
Analysts anticipate continued market volatility, with oil traders balancing supply disruptions in Kazakhstan and delayed OPEC+ production adjustments against concerns over slowing global demand.
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