Naira Holds Well Against US Dollar, Closed at N1,359
The Nigerian local currency, the naira, maintained its position in the foreign exchange (FX) market against the dominant US dollar on Friday, with the official rate closing at N1,359.
The local currency rallied sharply this week as interbank liquidity increased while foreign reserves declined. The nation’s gross external reserves lost about $1 billion since peaking at 2009 high last month.
This suggests that the Central Bank of Nigeria (CBN) has been settling its FX liabilities and meeting international payment requests from eligible non-bank corporates.
FX inflows in the market have been supported by hot monies flowing through the financial market and other sources, including the CBN supply.
In the parallel market, the naira climbed to N1370 per greenback, driven by continued buying interest in the local currency in the informal segment.
Crude oil markets reversed sharply lower as traders shifted from aggressive risk pricing to rapid liquidation, supported by an improved geopolitical outlook.
Iran and the US made headway on a ceasefire this week, though reports indicate that passage through the Strait of Hormuz remains restricted, with some ships stuck in the waterway.
After surging the previous week on geopolitical tensions, May WTI crude failed to sustain higher levels and entered a wide, volatile range.
According to the oil market report, crude oil prices reached a weekly high of $117.73 before falling to a low of $91.05. Earlier in the day, crude oil was trading at $98.39, down $13.15, or -11.79% for the week so far.
This sharp reversal follows last week’s breakout rally, where supply fears tied to Middle East tensions drove prices higher. The current price action suggests that traders are now reassessing those risks while locking in profits after an extended move.
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