The naira, came under renewed pressure, this week, losing ground, at the official window, despite sustained interventions, by the Central Bank of Nigeria, (CBN), aimed at stabilizing, the foreign exchange market, The local currency, weakened by 1.03 percent, week-on-week, to N1,436.58 per dollar, in the official segment, even as it appreciated, by 2.83 percent, to N1,450 per dollar, in the parallel market, reflecting a tug-of-war, between FX supply support, and persistent demand pressures,
External Reserves Edge Higher, on Steady Oil and Non-Oil Inflows,
Nigeria’s external reserves, inched higher, by 0.23 percent, week-on-week, to $43.30 billion, from $43.20 billion, buoyed by steady oil receipts, stronger non-oil inflows, and a sustained trade surplus, which continue to reinforce, the CBN’s liquidity backstop, Analysts, note that the marginal reserve buildup, signals renewed balance-of-payment stability, supported by the apex bank’s strategic interventions, and improved export earnings,
Oil Prices Extend Decline, as Supply Glut Outweighs Geopolitical Risks,
Crude oil prices, extended their decline, for a second consecutive week, weighed down, by excess supply concerns, despite emerging disruptions, in Russian exports, following recent U.S. sanctions, Brent crude, traded at $63.69 per barrel, and WTI, at $59.73 per barrel, both sliding, from the week’s opening levels, as record volumes, of crude in transit, and rising floating storage, added to global market caution,
Similarly, Nigeria’s Bonny Light, fell by 1.48 percent, reflecting soft sentiment, across global energy markets, and signaling that supply-side imbalances, continue to cap price recovery, despite escalating tensions, in Eastern Europe, and the Middle East,
Outlook: Naira to Trade Within a Narrow Band, as CBN Sustains Interventions,
Looking ahead, analysts, expect the naira, to trade within a narrow band, in the near term, as the CBN, maintains steady interventions, to defend the currency, and moderate volatility, However, lingering FX demand pressures, and softening oil prices, may sustain mild downward pressure, on the naira,
With external reserves, showing gradual improvement, and liquidity buffers strengthening, the CBN, is likely, to sustain its managed float strategy, while monitoring, global crude price trends, portfolio flows, and monetary policy shifts, across major economies,
Despite ongoing challenges, Nigeria’s FX market outlook, remains cautiously optimistic, underpinned by improving non-oil exports, diaspora remittances, and external inflows, expected to support liquidity, and ease short-term currency volatility,
Godwin Okafor ✔
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.
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