The Nigerian naira has depreciated against the US dollar, closing at N1,528 per dollar in the official foreign exchange market. This drop persists despite the Central Bank of Nigeria’s (CBN) intervention, as demand for foreign currency continues to outstrip supply.
The naira lost even more value on the parallel market, closing the day at N1,570 to the US dollar. The decline comes after a temporary spike in value last Friday, when the CBN tried to stabilise the currency rate by injecting $360 million into the financial system.
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.
The oil market is still influenced by worries about possible U.S. sanctions on Iran, which keeps prices unstable even after OPEC+ decided to boost supply in April.
