The naira weakens sharply as Trump’s threat of military action against Nigeria sparks investor panic and market volatility.
Nigeria’s foreign exchange market opened November on a rough note as the naira dropped to ₦1,436.34/$ on Monday, losing ₦15 (1.03%) in one day, following U.S. President Donald Trump’s comments suggesting possible military action over alleged religious persecution.
The parallel market also saw the naira slide to ₦1,455/$, amid heightened investor anxiety. Nigeria’s dollar bonds ranked among the worst-performing emerging market assets, with the 2047 note down 0.6 cents to 88.26 cents per dollar.
Trump designated Nigeria a “Country of Particular Concern” and threatened to cut $1.2 billion in U.S. aid and involve the Pentagon if “Christian killings” continue.
The shock came after a strong October rally powered by rising reserves ($43.19bn) and CBN reforms. Meanwhile, a stronger U.S. dollar index (DXY 99) and slowing Fed rate cuts further pressured emerging-market currencies and gold prices.
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