Naira dey shine, dollar dey waka waka for market

Lagos, Nigeria – Una go believe say our Naira don dey maintain small-small gains against the big boss, US dollar, wey sabi hold ground for the official Nigerian Foreign Exchange Market (NFEM). As of Monday, currency dey trade around ₦1,466 to $1 for the official side. Meanwhile, na for the parallel market wey AbokiFX dey track, Naira don gather strength, trading around ₦1,450. Wetin we dey talk here na real hustle, as traders don confirm say the NFEM figure dey show say dollar dey enter small-small and market dey chop liquidity injections wey modest.

All dem forex dealers dey sharp for action, as dem dey buy and sell dollar for mid-₦1,400s on AbokiFX’s live black-market feeds. E just dey funny, because dem buy/sell quotes dey hang around ₦1,445–₦1,460 on Monday. Na real gospel wey enter the market this time. Talk about forex market?! Make nobody dull! (This na the time to flex if you sabi how e dey work!)

As everything dey happen, Foreign Portfolio Investors (FPIs) dey require Naira to stake their bets inside Nigerian markets. We talk say big men for Apex Bank don also inject dollar into the market, helping our Naira take be like person wey find light after dark. Naira dey gather momentum as traders dey rush for Naira assets. During the week, dem push dollar enter market, and Naija dey enjoy the early morning sunshine of stable currency.

Now, we no go lie, CBN don inject $22 million, like water for mouth, into forex market to reduce FX demand pressure. E be like say dem sabi wetin dem dey do, as since dem reconnect with managing excess liquidity, dem don organize open market auctions wey make both FPIs and local banks feel like big boys. Everybody dey party hard for market this quarter, as Naira don dey waka fine after weeks of shortage.

But no be all rosy as we talk; at the beginning of the week, Naira don face small wahala with demand pressure wey make am dey devalue across key segments. Thankfully, midweek sentiment don change di whole gist, thanks to steady inflows from FPIs wey dey buy Naira to meet local financial obligations. AIICO Capital Limited don cause dey gist as dem report say Naira appreciate from midweek through Friday, as dem dey manage the market supply sabi-sabi.

On Friday, Naira don flex strong to close at ₦1,455.17/$; dat one be good news as e don appreciate 72bps week-on-week. And no be only Naira dey shine, foreign reserves don climb about $133.81 million to $42.58 billion. Analysts dey talk say Naira suppose maintain stable balance for near future, especially as US dollar supply don improve; more so, with the price of crude oil dey increase, we fit see foreign reserves sabi go up near $45 billion by December.

But, no forget say oil market dey shake as oil price fall more than $1 per barrel, following ceasefire agreement for Middle East. U.S. President Donald Trump don give market small drama, as e threaten increase tariffs on China. Brent crude don decline by $1.80 (−2.79%) to $62.73 per barrel, while U.S. WTI drop $1.98 (−3.25%) to close at $58.90. Gold huh? Na wa, gold dey look like it wan balance as e briefly rally above $4,000-per-ounce. E don show where e wan go as economies dey flip for safety.

For next week, commodities expect to trade mixed, gold fit still dey flex due to safe-haven demand among geopolitical tensions. Oil however fit still dey pressure because of rising supplies. E be like say our forex market get mild optimism, but to stay in this happy mood, we need better reforms and policies wey go make Naira shine bright for longer. Chai, so many wahala dey ground!