Naira Gains Marginally, Exchange Rates Gap Reaches N245

BREAKING: CBN Officially Unifies All Exchange Rate Windows

On the Nigerian autonomous foreign currency market, the naira saw a little increase as demand outpaced the amount of US dollars provided for the first time this week. With the difference between official and unofficial values growing, the future of the local currency is still unclear.

At the official window, the Naira closed at N1,551.24 per US dollar, 2.96% ahead of the greenback. In the meanwhile, the Naira lost ground versus the US dollar on the parallel market, closing at N1,796 per US dollar.

With the FX difference growing, the fight for FX reform has now reverted to its initial state. The difference between the official and parallel market exchange rates at the end of the trading session on Tuesday grew to N245, which is a major catalyst for currency speculation.

In the global oil market, prices of crude rebound. Oil prices regained some ground in Asian trade on Wednesday amid concerns over attacks on shipping in the Red Sea and growing expectations that cuts to U.S. interest rates will take longer than thought.

Brent crude futures rose 30 cents or 0.36% to $82.64 a barrel, while U.S. West Texas Intermediate crude futures (WTI) were up 26 cents or 0.34% at $77.3.

The Brent and WTI contracts fell 1.5% and 1.4% respectively from near three-week highs on Tuesday as the premium for prompt U.S. crude futures to the second-month contract more than doubled to $1.71 a barrel – its widest level in roughly four months.

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