Naira Slumps to N776 as External Reserves Print Lower
The Nigerian local currency, the naira, lost weight against the United States (US) dollar across the foreign exchange markets midweek due to sustained demand pressures amidst worsening forex supply.
The imbalance in forces of demand and supply has continued to drive the exchange rate into the red for Nigerians while speculators are cashing in on the widening gap between parallel and official rates.
Data from FMDQ showed that the Naira depreciated by 1.43% at the Investors and Exporters FX window, closing at N776.80 to the dollar from N765.83 per dollar the previous day.
In the parallel market, the Naira traded weak on Wednesday, closing at a new low of N1,030 against the US dollar, according to channel checks. Crude oil price retreated to around $85 per barrel as fears of possible supply disruption from the Middle East started to fade away.
Resultantly, the WTI crude fell below $84 per barrel on Wednesday while the Brent Crude traded slightly above $85 per barrel as Saudi Arabia supports OPEC+ tightening.
The Central Bank of Nigeria (CBN) website detail showed that the nation’s gross external reserves printed lower at $33.221 billion amidst rising FX obligations. #Naira Slumps to N776 as External Reserves Print Lower Naira Devaluation Deepens Economic Crisis in Nigeria