Naira Depreciates to 1,385 Amid Middle East Crisis

The Naira has slipped against the US Dollar, currently trading at 1,385 per unit, reflecting a 0.3% depreciation over the past two weeks. This decline is attributed to escalating conflicts in the Middle East, which have rattled the global financial system and increased external pressures on Nigeria's economy.

The Naira had previously stabilized around 1,360, but the ongoing crisis has led to heightened volatility in the global energy market, with Brent crude oil prices climbing above $103 per barrel. This situation has resulted in a 30% increase in domestic energy costs, particularly petrol, despite a slight easing of inflation to 15.06% in February.

Analysts warn that the Central Bank of Nigeria may need to reconsider its stance on interest rates in light of rising fuel costs and the weakening Naira. The International Energy Agency has announced its largest-ever oil release of 400 million barrels to ease supply pressures, but market analysts remain cautious about the effectiveness of these measures.