Nigerian Naira Weakens as FX Reserves Decline, Citibank Warns of Challenges Ahead

The Nigerian Naira depreciated against the US Dollar as the country's foreign exchange reserves fell for the first time in two months, reaching $45.21 billion. This decline is attributed to sustained demand pressure in the foreign exchange market.

Analysts project a gradual strengthening of the Naira in the next six months, despite concerns over lower crude oil prices impacting Nigeria's foreign exchange earnings. Citibank's economist, David Cowan, warns of potential challenges ahead due to weaker oil prices.