Naira Diverges, Exchange Rates Gap Collapses to N25

The naira traded on a mixed note across the foreign exchange market amidst an increase in international payments, which some analysts have attributed to year-end import demand.

The local currency traded on a calm note in the official window on Tuesday, but foreign currency demand tempered in the informal segment due to offshore dollar transfers to Nigerians.

The Central Bank of Nigeria (CBN) hinted in its daily FX update that the official spot rate was unchanged at ₦1,451.82 per dollar, supported by intervention.

Meanwhile, the naira appreciated ₦1,476 in the parallel market, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.

Nigeria’s gross external reserves maintained an uptrend this week amidst pressures in the global commodity market. Gross external reserves surged to $45.472 billion as a market report showed prices of oil fell.

Oil prices fell by 2% early on Tuesday as hope of a peace deal in Ukraine increased, sending Brent crude below $60 per barrel to the lowest level since May.

International benchmark Brent crude oil fell by more than 2% to below $60 per barrel, its lowest level since May, due to rising hopes for a potential peace deal in the Russia-Ukraine conflict.

The prospect of a peace agreement could lead to an easing of sanctions on Russian oil, which would increase supply on an already well-supplied global market.

Oil markets are closely watching developments, as Russia’s seaborne oil exports are struggling to find buyers, with India’s imports of Russian crude expected to drop significantly this month.