The Nigerian naira has continued to weaken in the foreign exchange (FX) market due to an ongoing shortage of U.S. dollars and increasing demand for international transactions. According to data from the FMDQ platform, the naira depreciated by 0.19%, closing at N1,512.58 per dollar......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
The Nigerian Foreign Exchange Market (NFEM) has been experiencing a persistent demand for foreign currency, which has led to a strong competition among buyers. However, financial services company AIICO Capital Limited reported that there was a noticeable increase in dollar liquidity, meaning more dollars became available for transactions. The exchange rate fluctuated between N1,450 and N1,520 per dollar throughout the day, depending on the type of transaction.
Similarly, in the parallel market—where people trade currency outside official channels—the naira weakened further, closing at N1,570 per dollar, a drop of N10 compared to the previous day. This decline was attributed to the ongoing dollar shortage and increased demand.
Oil and Gold Prices Show Mixed Reactions
In global markets, crude oil prices remained relatively stable as investors monitored possible peace talks between Russia and Ukraine. If successful, these negotiations could lead to the removal of certain economic sanctions, which might improve energy supply conditions worldwide. Despite this, oil prices saw slight gains:
Brent crude futures increased by 12 cents to $74.86 per barrel.
U.S. West Texas Intermediate (WTI) crude rose by 20 cents to $70.94 per barrel.
Meanwhile, the price of gold surged beyond $2,900 per ounce, as concerns about a potential trade war and a weakening U.S. dollar encouraged investors to seek safety in gold. Spot gold prices climbed to $2,896.41 per ounce.