The naira depreciated at the Central Bank of Nigeria’s official foreign exchange window as heightened demand for U.S. dollars outweighed supply inflows, reversing part of its recent rally.
Data released in the Central Bank’s daily foreign exchange update showed that the naira weakened by 24 basis points, equivalent to ₦3.24, against the dollar on Thursday. The pressure marked the second consecutive trading session of decline after the local currency had staged a strong upward movement earlier in the week.
Demand Pressure Overrides Inflows
Market analysts said sustained corporate and importer demand for dollar payments at the official window drove the depreciation. According to AIICO Capital Limited, foreign portfolio investor inflows and domestic supply were insufficient to counterbalance the strong demand pressure.
During the session, the naira traded within a band of ₦1,332.25/$ to ₦1,350.00/$ before settling at ₦1,341.35/$.
The development occurred even as Nigeria’s gross external reserves continued to rise. The country’s reserves increased to $48.50 billion, representing a day-on-day addition of $134.83 million.
Oil Prices Hit Six-Month High
Global commodity markets also influenced investor sentiment. International oil benchmarks surged by roughly 2 percent to their highest levels in six months amid growing geopolitical tensions between the United States and Iran, particularly in the oil-producing Middle East.
Brent crude gained 3.04 percent, or $2.12, to trade around $71.89 per barrel. U.S. West Texas Intermediate (WTI) rose 2.43 percent to approximately $66.63 per barrel.
Meanwhile, gold prices extended their upward momentum. Spot gold advanced 31 basis points to $4,994.68 per ounce, while U.S. gold futures edged 8 basis points higher to $5,013.29 per ounce.
Analysts expect continued caution in oil markets as geopolitical uncertainties persist. Safe-haven demand for gold is projected to track broader risk sentiment as investors monitor U.S. Federal Reserve monetary policy signals.
