Market News
Naira slips 0.91% at official window as investors appraise assets - THE GUARDIAN
By : Helen Oji
The naira depreciated by 0.91 per cent at the official foreign exchange window LAST week, closing at N1,366.23 per dollar from N1,353.9. This comes as the dollar continues to strengthen against other currencies following the global investment de-risking in the face of geopolitical tension.
In the parallel market, the naira weakened by 2.21 per cent to about N1,386 per dollar. The sharper depreciation outside the formal market reflects stronger unmet demand for foreign exchange and tighter liquidity conditions, widening the spread between the official and unofficial segments.
Amid the currency weakness, Nigeria’s external reserves recorded a marginal increase, rising to $49.97 billion from $49.83 billion.
The modest accretion points to relatively stable buffers but also highlights limited scope for aggressive or sustained intervention by the Central Bank of Nigeria (CBN) to stabilise the naira in the face of persistent demand pressures.
Global oil benchmarks rebounded during the week, supported by heightened geopolitical tensions in the Middle East. Brent crude rose to $108.56 per barrel, while West Texas Intermediate climbed to $98.38 per barrel, as fears of supply disruptions intensified following threats by Iran’s Islamic Revolutionary Guard Corps to target energy infrastructure in the region. The development injected volatility into oil markets and partially offset earlier price declines.
