Naira Drops to N1,383, NFEM Interbank Turnover Reduces
The naira dropped by 0.22% to ₦1,383.58 per dollar at the Nigeria foreign exchange market (NFEM) as intrabank turnover reduced, according to data published by the Central Bank on Monday.
The total monetary value of foreign exchange transactions conducted among authorised dealer banks declined to N142.291, data published by the Apex Bank revealed.
The CBN report indicates that the spot FX rate reached an intraday high of N1391 per dollar, and the lowest rate quoted for the day was N1380, with N145.291 million in interbank turnover, down from N172.892 million on Friday.
According to CBN, FX transactions were conducted across 115 deals, which was lower than the total of 141 deals closed on Friday in the official window.
In the parallel market, the naira weakened to N1425, reflecting renewed selling pressure across both the official and informal foreign exchange segments.
Last week, the Naira weakened across both the official and parallel market segments, reflecting persistent FX demand pressures.
At the official window, the currency depreciated by N26.67 to close at N1,380.58/US$1, while the parallel market recorded a 1.06% week-on-week depreciation to N1,420.00/US$1.
Despite the broad depreciation, the gap between the official and parallel markets narrowed to N39.42/US$1 from N51.10/US$1, suggesting relative alignment across FX segments.
According to CBN data, gross external reserves declined modestly to settle at US$49.48 billion amidst expectations that a US-Iran war will boost FX receipts, and enhance dollar inflows into the economy.
Brent oil prices are on pace for the biggest monthly surge on record, as the Iran war has entered its fifth week with President Donald Trump threatening to destroy the Islamic Republic’s oil wells.
International benchmark Brent crude futures with May delivery rose 0.13% to $112.72 per barrel. Brent has soared about 55% in March, a record for the contract dating back to its inception in 1988. The previous monthly record was a 46% gain in September 1990 during the first Gulf War.
U.S. West Texas Intermediate futures with May delivery traded 3.84% higher at $103.47. U.S. crude oil has also gained about 55% in March and is on pace for its best month since May 2020.
Trump on Monday warned Iran that the U.S. would destroy its oil wells, power plants, and Kharg Island unless the Strait of Hormuz was reopened.
In an interview with the Financial Times on Sunday, the U.S. president said his preferred option in Iran would be to “take the oil,” likening it to U.S. actions in Venezuela, where Washington effectively gained control over the country’s oil sector after the capture of its leader, Nicolás Maduro.
His remarks come as the conflict between U.S.-Israel and Iran has entered its fifth week, with attacks spreading across the region, heightening risks to energy infrastructure and driving a sharp rally in crude prices. Zenith Bank Becomes Most Valuable Lender in Nigerian Market
