CBN Releases New Exchange Rate as Naira Recovers Amid Dollar Scarcity
- The naira appreciated against the dollar, closing at N1,419.35 amid strong dollar supply
- US dollar weakness linked to geopolitical tensions affects global forex markets and investor sentiment
- Nigeria’s external reserves rose to $45.95 billion, supporting near-term FX stability despite mixed market performance
The Nigerian naira strengthened against the US dollar at the official foreign exchange window on Tuesday, supported by strong dollar supply and muted international payment demands, according to a daily FX update from the Central Bank of Nigeria (CBN).
At the Nigerian Foreign Exchange Market (NFEM), the naira appreciated by 7 basis points, or 94 kobo, to close at N1,419.35 per dollar.
Source: Getty Images
Trading data showed the currency exchanged within a narrow band of N1,421 to N1,418.40, reflecting steady liquidity conditions.
Market operators said the appreciation was driven largely by improved dollar supply from non-bank corporates, exporters, and foreign portfolio investors, which outpaced FX requests submitted for foreign payments during the session.
Dollar slides as geopolitical tensions rise
The naira’s modest gain coincided with renewed weakness in the US dollar on the global forex market, triggered by escalating geopolitical tensions involving President Donald Trump’s renewed push to take control of Greenland.
The greenback came under pressure after Trump said there was “no going back” on his Greenland campaign, a stance that has strained relations between the United States and its European allies.
Although he signalled openness to talks, markets interpreted the comments as a precursor to deeper transatlantic friction.
As investors moved into safe-haven assets, the dollar fell 0.8 per cent against the euro, while the S&P 500 declined about 1.7 per cent.
Analysts at MarketForces Africa said capital is rotating out of structured dollar portfolios amid fears of retaliatory measures from the European Union and the United Kingdom.
External reserves improve, FX supply holds firm
Nigeria’s external reserves continued their upward trend, rising by $49.34 million to reach $45.95 billion, further reinforcing confidence in near-term FX stability.
Analysts expect the naira to remain relatively firm in the short term, supported by higher oil receipts, improved foreign portfolio investment inflows, and consistent FX management by the CBN.
However, the picture was mixed across markets. In the parallel market, the naira weakened slightly by 0.02 per cent to trade around N1,481 per dollar, reflecting lingering speculative pressures.
Oil Steadies, gold hits record highs
In commodities markets, oil prices steadied as civil unrest in Iran eased, reducing fears of supply disruptions from the major producer.
Brent crude inched up 0.05 per cent to around $64.16 per barrel, while US West Texas Intermediate rose 0.15 per cent to about $59.43.
Gold, however, surged to record highs as investors sought safety after Trump imposed new tariffs on eight major NATO and EU allies over Greenland.
The tariffs begin at 10 per cent and could rise to 25 per cent if the US fails to acquire Greenland by June 1, 2026.
Source: Getty Images
The dollar index fell below 98 on Tuesday, reflecting sustained selling pressure as markets brace for possible EU retaliation and a wider trade war.
Cautious outlook ahead
Analysts expect markets to trade cautiously in the coming weeks, with safe-haven demand supporting precious metals, oil prices remaining relatively stable, and emerging market currencies like the naira reacting closely to global risk sentiment and capital flows.
GTBank confirms new exchange rate
Legit.ng earlier reported that the naira weakened against major foreign currencies in the official market on Monday, January 19, pressured by stronger demand and limited dollar supply in the absence of visible intervention by the Central Bank of Nigeria (CBN).
Data from the Nigerian Foreign Exchange Market (NAFEX) showed the naira fell by N2.33, or 0.16 per cent, to close at N1,420.28 per dollar, compared with N1,417.95 recorded in the previous session.
The Nigerian currency also depreciated against the British pound, losing N4.56 to settle at N1,905.80 per pound, while it declined by N5.27 against the euro to close at N1,652.78.
Source: Legit.ng
