The Nigerian naira has weakened against the US dollar, closing at N1,528 per dollar at the official foreign exchange market. This decline comes despite intervention by the Central Bank of Nigeria (CBN), as demand for foreign currency continues to exceed supply.
On the parallel market, the naira depreciated further, ending the day at N1,570 per dollar. The drop follows a brief rally last Friday when the CBN injected $360 million into the financial system in an attempt to stabilize the exchange rate.
Analysts at AIICO Capital Limited noted that, despite the CBN’s intervention, demand pressure on the dollar remained high. The exchange rate fluctuated between N1,512 and N1,552 before settling at N1,528.03, marking a 0.66% decline in value.
Meanwhile, Nigeria’s foreign reserves increased to $38.35 billion, even as global crude oil markets faced instability. Oil prices saw slight gains following U.S. military action against the Iran-backed Houthi group in Yemen, which had been disrupting shipping in the Red Sea. Brent crude rose by 28 cents to $70.85 per barrel, while U.S. West Texas Intermediate climbed by 22 cents to $67.39 per barrel.
Gold prices also remained strong, nearing the $3,000 per ounce mark, as investors focused on trade policies and upcoming decisions by the U.S. Federal Reserve.
Despite OPEC+’s decision to increase oil production in April, concerns over potential U.S. sanctions on Iran continue to influence the oil market, keeping prices volatile.
