By Merciful Omoba
The naira recorded a mixed performance across currency markets this week, while Nigeria’s foreign reserves climbed toward the $40 billion mark amid sustained inflows.
According to data from the Central Bank of Nigeria (CBN), on Wednesday, the naira weakened slightly at the official window, closing at ₦1534.43/$1 compared to ₦1533.10 on Tuesday.
The intraday high hit ₦1537.25 amid reduced CBN dollar intervention, signaling tighter supply.
In contrast, the naira appreciated marginally at the parallel market to ₦1535/$1, supported by intermittent inflows and strong demand for personal travel allowances.
Dealers attributed the movements to seasonal pressures, though liquidity has improved in recent weeks.
Despite reduced CBN activity, analysts say a degree of stability has been maintained due to stronger external reserves and ongoing policy tightening.
As of Monday, gross reserves stood at $39.814 billion, putting the apex bank in a stronger position to defend the naira if needed.
Analysts say the naira’s near-term outlook will hinge on global oil trends, central bank policies, and market sentiment, though risks remain from falling oil prices and geopolitical tensions.
Global oil prices fell sharply, with Brent crude sliding to $66.69 per barrel and West Texas Intermediate down to $64.19, following renewed uncertainty around U.S. sanctions on Russia.
Comments by former President Donald Trump about progress with Moscow unsettled energy markets.
Gold also pulled back after recent gains, as spot gold declined 0.39% to $3,368.01/oz and U.S. futures dipped 0.22% to $3,430.52/oz.
Investors are watching for signals from the White House ahead of new Federal Reserve nominations and possible tariff actions against India.
