Nigeria’s currency, the naira, ended last week slightly weaker at the official foreign exchange market, slipping by 0.14 per cent week‑on‑week to close at ₦1,532.34 to the US dollar.....KINDLY READ THE FULL STORY HERE▶

Reports show that the local unit began the week on a strong note, trading at a four‑month high of ₦1,518.88/$, but lost steam midweek, falling to ₦1,530.25/$ and then ₦1,533.11/$ before settling at ₦1,532.34/$ on Friday.

Data from the Nigerian Foreign Exchange Market (NFEM) indicated that the naira traded as high as ₦1,538/$ and as low as ₦1,515/$ during the week. At the parallel market, it hovered between ₦1,535/$ and ₦1,544/$, highlighting slight fluctuations in the unofficial window.

Analysts attribute the mixed performance to persistent supply‑demand imbalances, even as they acknowledged that the Central Bank of Nigeria’s interventions and improved liquidity helped steady the market.

In its weekly review, Cowry Assets Management Limited noted that while the naira gained 0.06 per cent week‑on‑week at the parallel market to close at ₦1,544/$, it ended weaker at the official window.
“The divergent trends reflect ongoing supply‑demand pressures and a shifting liquidity landscape,” the firm said, while projecting that higher oil output and stronger crude prices could bring in more dollars, shoring up reserves and supporting the currency.

Fresh data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed average daily crude production, excluding condensates, rose by 3.6 per cent to 1.51 million barrels per day in June—meeting Nigeria’s OPEC quota for the first time in five months. This is expected to boost foreign exchange inflows and aid the CBN’s stabilisation efforts.

AIICO Capital Limited also revealed that the CBN conducted strategic dollar sales early and late in the week, helping maintain relative calm. “Reserves rose by $422 million to $37.85 billion as of Thursday, up from $37.43 billion the previous week,” its report noted.

As the Monetary Policy Committee (MPC) meets this week, analysts are split on whether to cut interest rates. While some cite easing inflation and improving FX inflows, others warn that premature loosening could jeopardise hard‑won reforms and expose the economy to lingering risks.

Comercio Partners observed that traders are staying cautious ahead of the MPC’s communique, which is expected to set the tone for market expectations.

Overall, with rising oil earnings, better liquidity, and central bank support, analysts believe the naira is likely to remain range‑bound in the short term, pending signals from the MPC and broader global developments.

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