CBN Pumps $41m into Forex Market as Naira Stays Strong, Oil Prices Climb Amid Mideast Tensions
The naira was stable at around ₦1,549 per dollar as of Thursday thanks to a $41 million injection from the Central Bank of Nigeria (CBN) into the official foreign exchange market. After increased corporate demand for dollars earlier in the week, the move was intended to relieve pressure on the currency.
Authorized traders purchased the foreign currency at prices ranging from ₦1,546.15 to ₦1,550 per dollar. The CBN’s July sales thus far have been lower than the $580 million in total interventions in May. Nigeria’s external reserves, meanwhile, have fallen below $38 billion in spite of the most recent infusion, underscoring continuous capital outflows.
Globally, rising tensions between Iran and Israel have sparked concerns about a wider Middle East conflict, and as a result, oil prices have increased by about 3%. U.S. West Texas Intermediate (WTI) increased by $2.06 (2.7%) to close at $77.20 a barrel, while Brent oil gained $2.15 (2.8%) to conclude at $78.85 per barrel. Analysts warned that the price surge would not last long if the tensions don’t improve.
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As traders weighed geopolitical concerns against predictions of the U.S. Federal Reserve’s ongoing tight monetary policy, gold prices saw little fluctuation. U.S. gold futures fell 0.7% to $3,382.80, while spot gold down 0.1% to $3,365.79.
As investors keep an eye on domestic and international developments, Nigeria’s economic picture is still shaped by the mix of foreign exchange interventions and rising global commodities prices.
