The naira remained volatile below N1,550/$ in the unofficial market despite growth in Nigeria’s FX reserves. Crude oil production stagnation has hindered the Central Bank of Nigeria’s (CBN) efforts to stabilize the currency, keeping it from breaking the N1,200/$ resistance.
Rising demand for foreign exchange, particularly for tuition, travel, and fuel imports, continues to put pressure on the naira. Meanwhile, delays in the naira-for-crude agreement between NNPCL and Dangote Refineries could further strain FX supply and inflation control efforts.
Nigeria’s FX reserves reached $23.1 billion in 2024, reflecting improved liquidity and investor confidence. However, the dollar remains strong, driven by anticipation of U.S. President Donald Trump’s new tariff policies, which could shake global markets.
The U.S. Dollar Index held steady at 104.20, with traders awaiting details on potential global tariffs of 20%-25%. Economic uncertainty, weak U.S. data, and fears of a trade war may weigh on the dollar’s long-term outlook.
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