The naira weakened slightly against the US dollar in the official foreign exchange (FX) market, losing 0.02% to close at ₦1533.63 per dollar. This dip followed a surge in demand for dollars, coupled with reduced interventions by the Central Bank of Nigeria (CBN)......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Increased trading activity in the Nigerian Foreign Exchange Market (NFEM) saw exchange rates ranging between ₦1530 and ₦1537 per dollar. Meanwhile, in the parallel market, the naira strengthened slightly, gaining ₦10 to close at ₦1645 per dollar. Commercial banks continued providing access to foreign currency for business transactions, travel, and other payments.
The gap between the official and parallel market rates widened to ₦112 per dollar. This gap has fueled speculative trading as market players respond to ongoing FX reforms. Last week, the naira gained ₦16 in the official market, thanks to CBN’s dollar sales, which temporarily boosted liquidity.
However, these interventions have drained Nigeria’s foreign reserves, which have fallen below $40 billion. Compounding the issue, global oil prices declined by 3%, hitting a two-week low due to a tariff dispute between the US and Colombia and sell-offs in the tech and energy sectors. Brent crude was priced at $76.50 per barrel, and WTI traded at $72.60 per barrel.
Gold prices also fell by over 1% to $2,736.75 per ounce as investors shifted focus to new AI innovations, triggering a broader market sell-off.