The naira experienced further depreciation across foreign exchange (FX) markets as demand for the US dollar continued to outstrip supply in Nigeria’s autonomous FX market.
In official trading, the naira fell by 0.15%, closing at ₦1,681.42 per US dollar. Persistent US dollar shortages have pressured the naira, pushing it past key resistance levels, potentially signaling more depreciation ahead.
With demand for foreign currency rising, the exchange rate has held above N1,600, and analysts forecast the naira could weaken further as the one-year forward rate exceeds N2,000.
In the parallel market, the naira fell to ₦1,730 per dollar, losing N5 due to increased demand in the informal economy. The widening gap between official and parallel market rates presents speculative opportunities, with the difference now at N49 per dollar.
Meanwhile, global oil prices dropped on Monday, with Brent Crude falling 2.79% to $72.03 per barrel and West Texas Intermediate (WTI) dropping 2.75% to $68.44 per barrel. This decline reflects persistent market volatility from geopolitical and supply-demand factors. Oil prices were pressured as China’s latest stimulus measures did not meet expectations for boosting fuel demand, and a strengthening US dollar further impacted global commodities.
Gold prices also dropped by over 2%, affected by the dollar’s rise and uncertainties surrounding potential changes to US fiscal and interest rate policies under Donald Trump. Gold traded around $2,619.10 per ounce, reflecting these broader economic concerns.
