Nigerian Naira Slides Amid Rising Reserves to $46 Billion as Global Oil Prices Surge

The Nigerian Naira experienced a decline against the US Dollar, with the official exchange rate depreciating by 0.21% to close at N1,421.63 per dollar. The parallel market saw a 0.72% drop, reaching N1,475 per dollar, reflecting ongoing demand pressures and structural issues in the foreign exchange market.

Analysts express bearish sentiments towards the Naira, citing global economic uncertainties, particularly around the United States' protectionist trade stance. The rise in external reserves to $45.99 billion provided some support, but challenges persist due to sustained foreign exchange demand.

Meanwhile, global oil prices surged following heightened geopolitical tensions, with Brent crude trading at $64.50 per barrel and WTI at $59.78 per barrel. The increase was fueled by concerns over potential supply disruptions due to US sanctions on Iranian vessels and naval movements towards Iran.