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The Nigerian naira saw a slight depreciation against the US dollar across the foreign exchange (FX) market as the Central Bank of Nigeria (CBN) maintained its liquidity support to stabilize the currency.
Despite ongoing pressures, the apex bank’s consistent FX interventions have helped prevent a more significant decline. However, analysts believe that while FX sales to banks provide temporary relief, they are not a long-term solution to Nigeria’s exchange rate challenges.
According to market data, the naira depreciated marginally by 0.01%, closing at ₦1,530.62 per US dollar in the official market. This reflects moderate pressure on FX reserves despite CBN’s continuous injections. The local currency has been under strain following a decline in FX inflows, which dropped from $1.34 billion to $1 billion last week.
To counter this, the CBN has ramped up FX sales to banks, ensuring that Bureau de Change (BDC) operators have sufficient access to foreign currency. Analysts note that with banks maintaining adequate dollar liquidity, BDC operators are unlikely to face severe shortages, particularly following the CBN’s approval of $25,000 weekly FX purchases from banks.
This marks the sixth FX intervention by the CBN in two weeks, as the bank continues to sustain FX supply to stabilize the market. On Thursday, the naira remained relatively stable, backed by improved FX supply, with the CBN selling $92.1 million at rates between ₦1,526.17 and ₦1,535. A day earlier, it had sold $44.75 million within the range of ₦1,522.70 and ₦1,531, helping mitigate the naira’s exposure to a strengthening US dollar.
In the parallel market, the naira remained steady at ₦1,585, as demand pressures eased following improved supply to banks.
Meanwhile, oil prices surged on Thursday as escalating tensions in the Middle East and new US sanctions on Iran offset the impact of a stronger dollar. Brent crude futures rose 1.72% to $72 per barrel, while West Texas Intermediate (WTI) climbed 1.64% to $68.26.
Gold prices, after reaching an all-time high earlier in the session, saw a 0.3% dip to $3,038.79 per ounce, driven by profit-taking. However, the precious metal remains supported by expectations of US Federal Reserve rate cuts and ongoing geopolitical uncertainty.
The coming weeks will determine whether CBN’s sustained FX interventions can maintain stability or if deeper structural reforms will be required to address the naira’s long-term resilience.
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