How the dollar rose amid the crude oil price crash

• The naira has crashed to its lowest successful 2025 against the dollar successful the Nigerian Foreign Exchange Market (NFEM).
• The naira traded N1,644 per dollar connected Wednesday, April 9, 2025, down from N1,615 the erstwhile day
• The improvement comes arsenic the Central Bank of Nigeria (CBN) said remittances deed their highest successful 5 years

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The Nigerian currency, the naira, crashed again connected Wednesday, aft a little reprieve successful the Nigerian Foreign Exchange Window (NFEM) connected Wednesday, April 9, 2025.

The naira’s clang comes arsenic crude oil prices fell to pandemic levels pursuing the commercialized warfare betwixt the United States and China, arsenic some countries intensified tariff hikes.

CBN's involution successful FX fails to stabilise the naira against the dollar. Credit: Novatis
Source: Getty Images

Crude lipid terms driblet crashes the naira

Analysts accidental the planetary tariff hikes slapped connected countries by President Donald Trump volition origin further shocks to economies and currency fluctuations.

On Wednesday, April 9, 2025, the naira traded astatine N1,644 per dollar from N1,615 the previous day.

The naira’s clang comes amid the involution of the Central Central Bank of Nigeria (CBN) erstwhile it sold astir $197.71 cardinal to authorised dealers past Friday to boost liquidity.

CBN said the Nigerian forex marketplace is built to withstand macroeconomic shocks caused by planetary fluctuations.

Naira crash: CBN gives update connected dollar inflows

Meanwhile, CBN revealed that remittance flows into the Nigerian system roseate by 9 per cent to $20.98 billion, the highest level successful 5 years nether the existent enactment of Olayemi Cardoso.

The apex slope said the past clip remittances exceeded that level was successful 2029 erstwhile they deed $23.80 billion.

World Bank’s information shows that Nigeria’s highest remittance inflow successful the past 10 years happened successful 2018 astatine $24.31 billion, portion the lowest was recorded successful 2024 astatine $17.21 billion.

CBN revealed that idiosyncratic remittances remained robust successful 2024, rising 8.9% to $20.93 billion.

Inflows from International Money Transfer Operators (IMTOs) roseate by 43.5%, hitting $4.73 cardinal from $3.30 cardinal successful 2023, showing a deeper collaboration with diasporan Nigerians.

Official improvement assistance besides roseate by 6.2%, boosting Nigeria’s outer reserves.

The naira remains dependable successful the achromatic market

Also, Nigeria’s FX reserves roseate by $6.0 billion, hitting $40.19 cardinal by the extremity of 2024.

BusinessDay reported that the naira depreciated by 40.9% successful the reappraisal period, closing 2024 astatine N1,535 per dollar, an N628 depreciation, comparative to N907 per dollar successful 2023.

Meanwhile, connected Wednesday, April 9, 2025, currency dealers quoted the dollar astatine a precocious of N1,650 per dollar and a debased of N1,589.

Data from Abokifx, the level listing achromatic marketplace rates, shows that the naira remained dependable successful the parallel marketplace astatine N1,620.

Naira crash: Black marketplace dealers request CBN’s intervention

Abbas Yishau, a achromatic marketplace currency dealer, disclosed successful an exclusive chat to Legit.ng that the naira is facing renewed unit arsenic request for the US dollar rises.

Currency dealers request interventions from Olayemi Cardoso-led CBN. Credit: CBN
Source: Twitter

“The spike successful dollar demands is owed to the autumn successful crude oil, but dollar supplies from the CBN are not capable to conscionable our demands.“We volition request the CBN to merchantability dollars to achromatic marketplace operators arsenic it did to authorised slope dealers past week,” helium said.

JP Morgan predicts a caller Exchange complaint for the naira

Legit.ng earlier reported that JP Morgan, the American concern banker, has said the alteration successful the enactment of the Nigerian National Petroleum Company Limited (NNPC) and the merchandise of Nigeria’s nett overseas speech reserves (NFER) are changing the tide successful the market.

Amid expanding planetary uncertainty, JP Morgan upheld a affirmative standing connected the Nigerian market, stating it is insulated from US slowdowns.

The institution disclosed this successful its enactment to investors connected Wednesday, April 2, 2025, stating that the Nigerian FX market provided capable complaint extortion to easiness imaginable FX losses.

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Source: Legit.ng