Naira Value Weakens to N1,350 as FX Payments Surge
The Nigerian local currency fell against the dollar, trading at N1350 at the official currency market, as foreign payment pressures increased on Tuesday.
The spot rate weakened as FX outflows exceeded inflows, while analysts attribute the sustained decline in external reserves to debt service costs on Nigeria’s borrowings.
According to data published by the Central Bank (CBN), spot rate hovered between N1345 and N1357 during the trading sessions, with N91.866 million in interbank liquidity.
The Apex Bank indicated in its official FX publication today that interbank liquidity at the Nigerian Foreign Exchange Market (NFEM) surged to N91.866 million across 106 deals.
The CBN continues to intervene in the forex market to keep the naira stable, though traders noted that the FX injections have slowed, reflecting the absence of a significant shock.
In the parallel market, the local currency dipped to ₦ 1,375/$, reflecting divergent currency dynamics between the official and the informal foreign exchange segments.
On the external front, Nigeria’s gross foreign reserves fell below $49 billion following successive outflows for external debt servicing and FX interventions.
Earlier in the week, analysts at Coronation Merchant Bank have indicated expectation that the Naira will remain relatively stable in the near term, supported by sustained FX liquidity at the official window and ongoing foreign portfolio participation.
Oil prices surged again as the US deadline for Iran to open the Strait of Hormuz draws near.
West Texas Intermediate (WTI) futures jumped 4% to trade above $93 per barrel, while Brent futures added 2% above $98, retracing the bulk of last week’s slide on initial ceasefire optimism.
Dow Jones Industrial Average (DJIA) futures, which printed an overnight high near 49,800, reversed to trade back near 49,400 as the Oil complex rallied and Treasury yields firmed.
Only 16 vessels transited the Strait of Hormuz on Monday, per MarineTraffic data, a reminder that a waterway normally carrying around 20% of global Oil flow remains shut.
