Naira Depreciates to N1,475 over US Dollar Shortfall
The naira depreciated to N1475 per US dollar at the Nigerian foreign exchange market, reflecting liquidity shortfall amidst rising demand for the greenback
Updated FX data released by the Central Bank of Nigeria (CBN) showed that the spot rate worsened during intraday, quoted at N1482 per dollar.
Recording a weekly loss of N20 per greenback transacted at the official window, the exchange rate movement this week suggests an increase in demand for US dollars.
This happened despite inflows from exporters, non-bank corporates and other sources. Missing link in the forex market including slowdown in aggregate flow from International Oil Companies and CBN FX sales.
Hence, the naira extended its losses against the dollar on Monday, falling 0.29% to ₦1,475.35 at the official window, closing at ₦1,500, according to channel checks.
The exchange rate spread for the official and unofficial window expanded to N25 per dollar sale this week. Meanwhile, Nigeria’s gross external reserves maintained an uptrend this week.
Total foreign reserves increased to $42.681 billion , up from $42.669 billion the previous day amidst oil price fluctuations. Oil prices move towards the third week of losses, weighed down by signs the market is tipping into the surplus that analysts have been watching for.
West Texas Intermediate traded near $57 a barrel, on track to drop roughly 3% this week in its longest losing streak since March. India has halved its purchases of Russian oil, a White House official said.
Howwver, India said no immediate reduction had been seen, as President Donald Trump’s administration presses New Delhi and other nations to buy less Russian crude. AXA Mansard Jumps by 12% as Investors Bet on Earnings Outlook
