Naira Tumbles to N1681, Exchange Rates Gap Now N49
The naira tumbled again across the foreign exchange (fx) markets due to increasing demand and lower US dollar supply at the Nigerian autonomous foreign exchange market.
In the foreign exchange market, the naira depreciated by 0.15%, closing at ₦1,681.42 per US dollar at the official market. The local currency has crossed a fresh resistance level that could further exacerbate exchange rates directions across forex markets.
The spot rate at the Nigerian autonomous foreign exchange market has been under pressures due to US dollar shortage. While inflows has been on the uptrend, demand for foreign currency has been increasing at a faster pace.
This has kept exchange rate above N1,600 while analysts predicted the naira could fall further as one year forward rate crossed N2000.
In the parallel market, the naira closed at ₦1,730 to the US dollar, down by N5 on the day due to slight demand pressures from the dark economy side.
The exchange rates directions widened foreign exchange rates gap, creating opportunity for speculators to pick bets.
Data revealed that the gap between official and parallel market rates extended to N49 on each dollar in the forex markets.
On Monday, oil prices declined in the global commodity market, with Brent Crude falling 2.79% to $72.03 per barrel and West Texas Intermediate (WTI) dropping 2.75% to $68.44 per barrel. These fluctuations highlight ongoing market volatility driven by factors such as geopolitical tensions and supply-demand dynamics.
Oil prices declined after China’s stimulus plan failed to meet investors’ expectations for increased fuel demand from the world’s second-largest oil consumer, while the U.S. dollar slightly strengthened.
Additionally, gold prices decreased by over 2%, pressured by the strengthening dollar and the potential impacts of Donald Trump’s election on fiscal policy and interest rate reductions. Gold traded around $2,619.10 per ounce. #Naira Tumbles to N1681, Exchange Rates Gap Now N49 FX Stability: CBN Sells 122.671m Dollars to 46 Authorised Dealers
