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The Nigerian naira continues to hold firm against the US dollar, buoyed by the Central Bank of Nigeria’s (CBN) sustained foreign exchange (FX) interventions across multiple market segments. With steady FX supply, exchange rates have remained within a stable range, as demand for foreign currency obligations is consistently met.
Market trends indicate that pressure from invisible FX users—particularly in the parallel market—has eased significantly. Analysts attribute this to increased access to foreign currency through commercial banks for business and personal travel allowances, intensifying competition with Bureau de Change (BDC) operators.
With the CBN strategically supplying FX across both official and parallel market channels, the exchange rate has stabilized. Market optimism remains high, with expectations that the naira’s resilience will persist unless there is a shift in CBN policy.
On Thursday, the naira appreciated by 0.05% in the official market, closing at ₦1,498.28 per dollar. Meanwhile, in the parallel market, it traded at ₦1,495 per dollar, reflecting a continued trend of exchange rate stability.
The Nigerian Foreign Exchange Market (NFEM) maintained a trading range between $/₦1,496.00 and $/₦1,500.50. However, data from the CBN revealed that external reserves declined to $38.5 billion due to fluctuations in FX inflows, remittances, and crude oil revenue.
In the global commodities market, oil prices surged by 2% amid renewed supply concerns. This followed the revocation of Chevron’s license to operate in Venezuela by the U.S. government. However, potential de-escalation in the Russia-Ukraine conflict—raising prospects for increased Russian oil exports—alongside an unexpected rise in U.S. gasoline and distillate inventories, limited further price gains.
Brent crude advanced by $1.43 (2%) to $73.96 per barrel, while U.S. West Texas Intermediate (WTI) climbed $1.46 (2.1%) to $70.08. Meanwhile, gold prices fell to a two-week low, pressured by a stronger dollar and market anticipation of key inflation data, with spot gold declining by 1.2% to $2,882.49 per ounce.
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