Naira Tumbles, FX Shortage Stokes Pressure on Spot Rate
The Nigerian local currency, the naira, tumbled against the US dollar for international transaction settlement at the official window on Friday over extended liquidity shortfall.
The exchange rate direction signal of fx pressure at the official window has become more obvious as the Apex Bank intervention sales failed to quell demand and supply dislocation.
The spot fx rate touched an intraday high of N1469.9000 per dollar after the authority strengthened US dollar volume at the supply side, a significant day-on-day depreciation from the previously quoted N1462.
The Central Bank of Nigeria (CBN) FX update revealed that the official spot rate dropped to N1,464.4974, a share depreciation from N 1,457.8402 the previous day.
The CBN contributed to the supply side, and there were inflows from exporters and foreign portfolio investors. Non-corporate bank FX contributions tightened as international oil companies face pressures from uncertainties in the global commodity market.
Oil prices declined this week Due to rising hopes for a Russia-Ukraine peace deal and the possibility of eased sanctions, which fuelled concerns about an oversupply in the market. Brent crude declined 1.56% week on week to $60.14 per barrel, as markets remained largely indifferent to geopolitical risks.
Even with Trump’s announcement of a complete blockade on Venezuelan oil tankers and Ukraine’s strike on a Russian shadow fleet tanker, prices barely moved, underscoring how desensitised traders have become to supply shocks.
The International Energy Agency’s (IEA) downward revision of its 2026 oversupply forecast and expectations of weaker demand into early 2026 added to bearish sentiment.
Analysts warn Brent could end the year below $60, as stable Petroleos de Venezuela (PDVSA) loadings and muted global consumption outweigh regional disruptions in Brazil and Mexico.
Precious metals saw mixed movements this week. While gold lost ground as optimism over a potential Russia-Ukraine peace deal reduced its safe-haven appeal, other precious metals advanced.
Investors sought out these alternatives in response to persistent market volatility and the prospect of stronger industrial demand. CBN Upgrades Treasury Bills Offer Size, Adds New Auction
