Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency, the naira, has reacted positively to the ongoing Israeli-Iranian conflict.

The naira opened the week positively and strongly against the US dollar following the rise in crude oil prices.

Data from the global crude oil market shows that benchmark crude rose following the Middle East tension.

According to a previous report by Legit.ng, Brent gained about 5.54%, closing at $73.20, WTI hit 5.58% to $71.84, while Murban crude rose 4.84% to sell at $72.60 per barrel.

Meanwhile, the naira appreciated against the US dollar in the Nigerian Foreign Exchange Market (NFEM) on Monday, June 16, 2025.

At the close of trading, the local currency edged slightly upwards, rising from N1,543 per dollar, up from N1,544 on Friday, June 13, 2025.

However, the Central Bank of Nigeria (CBN) data shows that the apex bank fixed its NFEM rate at N1,544.6264, from N1,549.3511.

The data shows that currency dealers quoted the dollar at a high of N1,555 and a low of N1,541 per dollar.

The development comes as the Nigerian currency paused its 9-day winning streak on Friday, June 13, 2025, as demand for the US dollar spiked at the Nigerian foreign exchange markets (NFEM).

Data from the CBN shows that the exchange rate fell by N10 to N1,549.35 in the official market from N1,539.79 at the previous rate.

The FX market experienced some US dollar demand after nine days of gains against the US currency.

Legit.ng earlier reported that the apex bank spent about $580 million to defend the local currency in May, and there were no inflows from other areas, including exporters' supply.

Market Forces Africa said that some international oil companies’ dollar flows also contributed to average daily inflows, while the CBN was crucial in directing the spot rate with forex intervention.

However, Nigeria’s external reserves accretion dipped, with the gross balance of the country’s US dollar reserves settling at $38.33 billion amid uncertainties in the oil market.

Information showed that Bonny Light crude rose slightly during the period, caused by strong demand for Nigeria’s light sweet crude amid the Middle East tensions.

Bonny Light crude saw a 1.31% climb monthly in May 2025, to settle at $65.73 per barrel, while the average price remained at $65.90 per barrel over the period.

Legit.ng earlier reported that the CBN has adjusted the Customs foreign exchange rate for importers to clear goods at Nigeria’s air and seaports.

The new rate comes amid the naira’s massive gain against the US dollar on Thursday, June 5, 2025.

Data from the Customs trade portal shows that the apex bank crashed the Customs exchange rate in line with the recent naira gains.

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Source: Legit.ng