Naira Touched N1,508 as Market Sees More than Enough FX Supply
The naira touched an intraday low of N1,508 per U.S. dollar at the Nigerian foreign exchange market (NFEM) in the absence of significant demand for greenback, and strong foreign currency liquidity.
The local currency stays strong, even Nigerian local deposit money banks’ naira debit card daily fx quote for international payments appreciated significantly this week, according to MarketForces Africa channel checks.
At the official window, the naira closed the last trading session at N1,514.8671 per dollar, N1,531.5703 at the beginning of the week, reflecting sufficient US dollar volume in the forex market.
The FX market began the week stable, with balanced flows keeping rates around $/ ₦1527–1533 and no need for Central Bank of Nigeria (CBN) intervention.
Later, FX traders spotted offshore inflows and opportunistic demand lifted the NAFEX fixing to $/₦1528.13, before easing back to $/₦1527.00 on tight bid-offer spreads, Anchoria Securities Limited said in a note.
Forex market analysts said sentiment strengthened as the CBN injected $15 million and portfolio inflows increased, pushing rates to $/₦1519–1523. By week’s end, the naira held firm, trading within $/₦1508–1529.
“We expect next week naira is likely to stay stable in the near term, supported by stronger US dollar inflows, continued CBN policy measures, and steady supply from exporters”.
Latest update from the CBN showed the nation’s external reserves increased to $41.499 billion, the highest level since 2021. The market anticipates the gross external reserves to surge as Bonny Light, Nigeria’s crude oil grade, continues to attract premium in the global commodities market.
Oil prices fell sharply on Friday after weak U.S. jobs data dampened demand prospects and raised concerns over rising supply ahead of the weekend OPEC+ meeting. Brent crude dropped $1.88 (2.81%) to $65.11 per barrel, while U.S. WTI fell $1.94 (3.06%) to $61.54. Conversely, gold surged, approaching $3,600 as the jobs report bolstered expectations of Fed rate cuts.
Spot gold rose 1.5% to $3,596.01, hitting a record $3,599.89, marking its strongest weekly. The market expects commodities to remain volatile as traders watch India’s reaction to U.S. pressure and 50% import tariffs on Russian oil. #Naira Touched N1,508 as Market Sees More than Enough FX Supply CBN Offers 26.44% Interest Rate on 84-Day OMO Bills