Naira Opens Weak, Nigeria’s FX Reserves Signal Uptrend
The Nigerian naira opened weak on Monday after a weekly value depreciation of N10 against the US dollar. The local currency fluctuated despite the authority interventions in the official window, suggesting rising demand for international payments.
The FX market report revealed that the naira weakened against the U.S. dollar, declining by 0.70% in the official market to close at ₦1,371.04 on Friday.
The local unit opened at N1381.39, according to the Central Bank of Nigeria (CBN) daily FX data publication, amid fluctuations in interbank FX turnover.
In the parallel market, the local currency also depreciated to N1380 per dollar as informal segment demand surpassed total dollar inflows in the supply side.
In contrast, Nigeria’s foreign reserves recorded a marginal uptick of 0.19%, rising to $48.54 billion. The external reserves surged as the CBN recorded fresh inflows after a long pause.
In the oil market, Brent crude was on track for a 6% weekly gain following comments from President Donald Trump indicating growing impatience with Iran, despite reports that 30 vessels had recently transited the Strait of Hormuz.
At the time of writing, Brent crude had advanced by 3.24% to $109.20 per barrel, while WTI rose by 3.73% to $104.90 per barrel. Nigeria’s Bonny Light crude also strengthened, surging by 5.99% to settle at $116.99 per barrel.
Looking ahead, Cowry Asset Limited said the naira is expected to remain under pressure in the near term due to sustained FX demand and limited liquidity, despite a modest rise in external reserves.
Analysts noted that while higher crude oil prices provide some support through improved export earnings, they remain volatile and largely driven by geopolitical tensions.
Overall, the external position is likely to stay fragile, with the naira continuing to trade within a weak and volatile range absent stronger FX inflows or policy support. US Dollar Rises Against Crosses on Demand for Safe Haven
