Naira Depreciates Across FX Markets, Spread Hits N113
The naira has continued to pullback in the foreign exchange market due to a sustained shortfall in FX liquidity amidst rising demand for the US dollar. According to data from the FMDQ platform, the naira depreciated by 0.06%, closing at ₦1,547.67 per US dollar in the official market. The local currency has continued to face intense pressures in the FX market as a result of lower FX liquidity in the official market.
Meanwhile, in the parallel market, the naira closed at N1,660 per dollar, losing N5 per US dollar amidst a bearish outlook on the naira exchange rate. Analysts said transactions were consummated between N1,545 and N1,560 amidst expectation that the central bank will return to defend the naira.
A slew of analysts noted reviewed showed a bearish outlook with projections showing exchange rate would trend between N1700 and N1800 in 2025. FX spread, or the gap between official and parallel market rates, settled at N113 on each dollar, a significant incentive for speculative traders.
In the global commodities market, oil prices declined after reaching four-month highs, as the market assessed the impact of new U.S. sanctions on Russian oil exports to major buyers like India and China.
Brent crude was quoted at $80.57 per barrel, while WTI hovered around $78.58. Conversely, gold prices remained nearly steady, with market participants exercising caution ahead of key U.S. inflation data that could provide further insights into the U.S. interest rate trajectory. Gold traded at approximately $2,663.29 per ounce. ECOWAS Issues Deadline to Bukina Faso, Mali, Niger
