See why naira continue to fall against the US dollar

• Nigeria’s naira came nether renewed pressure, arsenic declining lipid prices reduced forex net and weakened overseas reserves
• The changes successful planetary lipid prices constricted the Central Bank's quality to enactment the currency successful the forex market
• Analysts pass of little fiscal gross and called for the request to shield Nigeria’s oil-dependent system from outer shocks

Legit.ng writer Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

Pressure connected the naira deepened successful the overseas speech marketplace amid renewed commercialized tensions betwixt the United States and China which triggered driblet successful lipid prices.

The benchmark Brent crude terms slid 15.5% month-on-month to adjacent astatine $63.12 per tube successful April 2025.

Naira worth rises against US dollar Photo credit: Bloomberg/contributor
Source: Getty Images

According to concern steadfast Afrinvest the steadfast stated successful its latest marketplace study noted that Nigeria, which relies heavy connected crude lipid exports for overseas speech earnings, the terms slump spells further trouble.

Afrinvest expert said:

"“April was a volatile period successful the lipid marketplace arsenic planetary commercialized tensions from Trump’s ‘liberation day’ tariff argumentation shook the vigor market. "Despite Trump exempting lipid from tariff policy, the marketplace reacted negatively, mostly owed to China (the world’s largest lipid importer) engaging successful back-and-forth commercialized wars with the US.”

Afrinvest besides added that the interaction of weaker lipid prices could importantly impact Nigeria’s macroeconomic position.

It stated:

“The benchmark Brent crude lipid terms fell 15.5 per cent m/m to adjacent astatine $63.12/bbl. (the biggest monthly driblet successful implicit 3 years."

Analysts accidental the continuous diminution successful crude prices whitethorn trim Nigeria’s outer reserves and restrict the Central Bank of Nigeria’s capableness to support the section currency, Punch reports.

They besides pass that the interaction could filter into the broader economy done weakened fiscal revenues and little capitalist confidence.

Naira autumn continues successful forex markets Photo credit: CBN
Source: Getty Images

Naira to dollar speech rates

The naira has continued to conflict crossed some the authoritative and parallel markets, with traders attributing the weakness to accrued dollar request and declining forex inflows.

At the extremity of past week data from the CBN showed that astatine the Nigerian Foreign Exchange Market (NFEM), the naira closed astatine N1,606 per dollar astatine the extremity of trading connected Friday, April 4.

Friday's speech complaint is simply a 0.24% depreciation for the naira erstwhile compared to the erstwhile day's closing complaint of N1,602 recorded successful the authoritative market.

The CBN revealed that intra-day trading fluctuated betwixt a precocious of N1,606.5/$1 and a debased of N1,600/$1 connected Friday..

This compares to Thursday's intra-day precocious and debased of N1,603.5/$1 and N1,580./$1, respectively, reflecting minimal volatility and a constrictive trading band.

In the parallel market, besides known arsenic the achromatic market, it was the aforesaid communicative for the naira against the US dollar.

Traders proceed to punctuation 1 dollar supra N1,600.

World Bank praises CBN politician Yemi Cardoso’s policies connected naira

Earlier, Legit.ng reported that Indermit Gill the Vice President and Chief Economist of World Bank, has supported Central Bank Governor Olayemi Cardoso’s overseas speech policy.

The planetary slope believes that the argumentation is simply a important measurement for Nigeria's economical betterment and considers it the close approach.

Gill besides commended the CBN politician for his attack to managing inflation, pointing retired that expanding involvement rates was the close direction.

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Source: Legit.ng