As of Thursday, the Central Bank of Nigeria (CBN) had stabilized the naira at roughly ₦1,549 per dollar by injecting $41 million into the official foreign exchange market. The action was intended to relieve pressure on the currency after earlier in the week there was an increase in business demand for dollars.
In the range of ₦1,546.15 to ₦1,550 per dollar, the foreign currency was offered for sale to authorized dealers. So far in July, the CBN’s sales have been lower than the $580 million total interventions in May. Nigeria’s external reserves have fallen below $38 billion, indicating continued capital outflows, even the most recent infusion.
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Amid growing tensions between Iran and Israel, which have sparked concerns about a wider Middle East conflict, oil prices rose by about 3% globally. While U.S. West Texas Intermediate (WTI) increased by $2.06 (2.7%) to close at $77.20 per barrel, Brent crude ended the day up $2.15 (2.8%) to $78.85 per barrel. Analysts warned that if tensions don’t improve, the price increase would not last long.
Gold prices, meanwhile, barely moved as traders weighed geopolitical worries against the U.S. Federal Reserve’s anticipated sustained strict monetary policy. While U.S. gold futures fell 0.7% to $3,382.80, spot gold narrowly declined 0.1% to $3,365.79.
The combination of rising global commodity prices and foreign exchange interventions continues to influence Nigeria’s economic outlook as investors keep an eye on domestic and international developments.
