In a bid to ease pressure on the naira, the Central Bank of Nigeria (CBN) injected $150 million into the foreign exchange market at the beginning of the trading week. As the apex bank continues its steady intervention, financial analysts predict the naira will likely remain within a relatively stable range throughout the second quarter.
As part of its continuous efforts to increase the liquidity of the FX market, the CBN provided $635 million to licensed dealer banks just last week. MarketForces Africa experts warn that any decrease in dollar inflow could exacerbate negative fluctuations in exchange rates, highlighting the significance of consistent action.
The naira once again came under notable demand pressure at the official market window as foreign investors accelerated their exit from naira-denominated assets.
To mitigate the adverse effects of this heightened demand for U.S. dollars, the apex bank sold $150 million, with exchange rates fluctuating between ₦1,593.20/$ and ₦1,623/$. According to AIICO Capital Limited, the trading session saw the USD/NGN pair move within a broader range of ₦1,593.10/$ to ₦1,630/$.
Latest figures from the CBN indicate that Nigeria’s gross external reserves declined to $38 billion, citing limited inflows and sluggish oil-related forex revenues.
Meanwhile, on the global commodities scene, crude oil prices slipped on Monday, overshadowing positive developments such as U.S. tariff exemptions for electronics and a rebound in China’s March crude imports.
Fears over the prolonged U.S.-China trade tensions stalling global economic growth and curbing fuel demand weighed on the oil market. Brent crude declined by 42 cents, or 0.65%, settling at $64.34 per barrel. U.S. West Texas Intermediate (WTI) crude also dropped 53 cents, or 0.9%, to $60.97 per barrel.
Spot gold lost 1.1% to $3,200.11, while U.S. gold futures slid 0.9% to close at $3,216.20. Gold prices, which had previously soared to record levels, slumped more than 1% as risk appetite improved in light of the tariff respite for computers and smartphones.
