Despite the Central Bank of Nigeria (CBN)’s recent intervention in the foreign exchange market, the naira continued to decline across official and parallel market segments due to persistent dollar scarcity.
The CBN’s official FX spot rate showed that the naira depreciated by around ₦2, trading at ₦1,608.60 per dollar at the Nigerian Foreign Exchange Market (NFEM), down from the previous ₦1,606.64.
Similarly, the FMDQ OTC FX platform recorded a further drop in the naira’s value, closing at ₦1,615 to the US dollar, as liquidity challenges remained a major concern. In a move to support the market, the apex bank intervened with a $50 million FX sale, with rates ranging between ₦1,605.10 and ₦1,608.
Following a series of FX inflows, Nigeria’s foreign reserves climbed to $38.096 billion, according to official figures reflecting recent currency transactions.
Meanwhile, oil prices took a hit in international markets on Wednesday, as traders shifted focus to upcoming trade negotiations between the United States and China. This development came after a brief recovery from earlier price dips.
Brent crude futures slid by 71 cents (1.14%) to $61.44 per barrel, while U.S. West Texas Intermediate (WTI) crude lost 66 cents (1.12%), settling at $58.43 per barrel.
Gold prices also declined by over 1%, pressured by a strengthening dollar and renewed market optimism regarding trade talks. Investor sentiment remained cautious ahead of the U.S. Federal Reserve’s policy announcement.
Spot gold dropped 1.3% to $3,385.48 per ounce, while U.S. gold futures shed nearly 1%, closing at $3,392.80, extending losses from earlier trading.
Market analysts warned that volatility in the oil sector is expected to persist, driven by a faster-than-expected rise in OPEC+ supply levels and ongoing uncertainties surrounding U.S. policy decisions.
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