Naira Official Rate Weakens as Foreign Reserves Pull Back
The naira’s official rate weakens due to FX liquidity shortages, as data from the Central Bank showed a sharp decline in interbank turnover and fewer deals.
Still, the exchange rate outlook remains positive, though external reserves have continued their downward trend, falling by $712 million, in contrast to the oil-windfall-linked projection.
The new week saw the Naira at the Nigerian Foreign Exchange Market (NFEM) close on a negative note, depreciating by 42bps or ₦5.86 against the U.S. Dollar.
The depreciation followed the previous week’s negative performance and was driven by renewed USD demand pressure despite activities from Foreign Portfolio Investors (FPIs) and local participants.
FX traders reported that the Naira traded within the ₦1,390.00/$ and ₦1,381.00/$ band during the session before settling at ₦1,386.65/$. Meanwhile, external reserves was noted at $49.13 billion as of 2-Apr-2026, reflecting a decline of $47.54 million day-on-day.
Oil prices fell below $100 per barrel on Wednesday as the Iran-U.S. ceasefire deal eased pressure on the global commodity market.
Global oil prices were mixed on Tuesday, with Brent flat on worries that high energy prices could cause slower economic growth, and U.S. crude on track for its highest close since 2022, ahead of U.S. President Donald Trump’s deadline for Iran to open the Strait of Hormuz.
Brent crude was noted flat, hovering around $109.77 per barrel, while U.S. West Texas Intermediate (WTI) gained 1.80% to trade around $114.43 per barrel.
However, Gold prices drifted higher on Tuesday, with market attention on U.S. President Donald Trump’s looming deadline for Iran to reopen the Strait of Hormuz or risk devastating attacks on its infrastructure.
Spot gold price lost 0.38%, to around $4,658.50/oz, while U.S. gold futures rose by 0.55%, hovering around $4,705.50/oz. Analysts at AIICO Capital Limited said they expect oil to trade at in line with developments amid talks and deadlines.
“We expect mixed trading with a downward bias in the gold market”. Brent Crude Price Falls 15% on U.S-Iran Ceasefire Deal
