Naira Strengthens Amid Rising FX Reserves
The Nigerian currency gained ground against the US dollar at the Nigerian Foreign Exchange Market (NFEM) as the country’s external reserves grew, boosted by consistent foreign inflows. The reserves now stand at approximately $38.5 billion.
While foreign exchange supply strengthened, market participants observed an uptick in dollar demand at the official window. Data from the Central Bank of Nigeria (CBN) indicated that the naira appreciated to ₦1,534.78 per dollar on Thursday, recovering slightly from ₦1,535.61 recorded earlier in the week.
According to AIICO Capital Limited, the increased inflows from the CBN and foreign portfolio investors (FPIs) contributed to the boost in FX supply.
The naira traded at an intraday high of ₦1,533.5, while the lowest exchange rate recorded was ₦1,533.45 per dollar, indicating relative market stability during the trading session.
Information sourced from the CBN platform showed a daily increase of approximately $132.75 million in the country’s gross reserves, now nearing $38.50 billion. The inflows were attributed to oil receipts and remittances from Nigerians in the diaspora.
In global commodities, oil prices continued their upward trajectory. Brent crude rose by 68 cents to trade at $79.19 per barrel, while U.S. West Texas Intermediate (WTI) gained 86 cents, closing at $76.11 per barrel. This came as U.S. crude inventories declined by 0.8% last week, reinforcing a positive demand outlook.
Meanwhile, gold prices dipped due to easing global tensions. Spot gold fell by 0.54% to $2,369.50 per ounce, while U.S. gold futures dropped by 0.72% to settle at $2,372.65.
Analysts suggest that, barring renewed geopolitical tensions, demand for safe-haven assets like gold may remain subdued in the short term.
