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The naira appreciated in the foreign exchange (FX) market as demand for the US dollar waned, bolstered by the Central Bank of Nigeria’s (CBN) strategic intervention. The apex bank injected over $300 million into the FX market, stabilizing liquidity and supporting the local currency’s recovery.
Authorized dealers reported that on Friday, the CBN sold $28.7 million in the forex market at rates ranging from N1,545.00/$1 to N1,555.00/$1. This intervention capped a week of significant activity, with total FX sales reaching $329.6 million.
In the official market, the naira appreciated slightly by 8 basis points, closing at N1,547.58 per dollar. Forex transactions were conducted within a trading range of N1,545 to N1,551.50, reflecting stable liquidity despite persistent demand pressures. The Nigerian Foreign Exchange Market (NFEM) eventually settled at N1,547.9989, marking a marginal depreciation of 8 basis points from the prior trading session.
Meanwhile, in the parallel market, the naira remained stable at N1,660 per dollar, reflecting steady demand.
Globally, oil prices experienced a dip following the second-term inauguration of U.S. President Donald Trump. In his inaugural address, Trump declared a national energy emergency, pledging to fill strategic reserves and enhance American energy exports. Brent crude traded at $80.15 per barrel, while West Texas Intermediate (WTI) hovered around $76.48.
Conversely, gold prices rebounded as investors sought clarity on the Federal Reserve’s future monetary policy under the new administration. Gold was priced at approximately $2,697.60 per ounce, reflecting cautious optimism among traders.
The naira’s recent appreciation underscores the effectiveness of the CBN’s measures to stabilize the FX market, ensuring liquidity while mitigating excessive demand pressures. These efforts highlight the commitment to maintaining economic stability amidst fluctuating global market conditions.
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