Naira Slumps to N1,603.78 as Reserves Drop Despite $634m FX Injection
Samuel Mobolaji
The naira weakened by 2.35 per cent against the US dollar to close at N1,603.78 as sustained sell pressure and dwindling external reserves overwhelmed the Central Bank of Nigeria’s dollar interventions.
The apex bank injected $634.85 million into the market last week to stabilise rates, but the move proved insufficient as foreign investors accelerated their exit from naira assets, deepening demand for the greenback.
Official reserves slid to $38 billion, though the CBN placed net usable reserves at $23 billion, reflecting the strain despite recent reforms.
Market data showed the NAFEX fixing fluctuated between N1,616.63 and N1,643.33, with trades ranging widely from N1,580 to N1,655, and occasional spikes to N1,665 on the B-match platform.
Analysts at CardinalStone estimated that at the current pace of FX sales, Nigeria’s reserves could provide cover for just 32 months.
Meanwhile, oil prices rebounded sharply, with Brent crude climbing by $1.43 to $64.76 per barrel and WTI also rising $1.43 to settle at $61.50, after the U.S. signalled potential new sanctions targeting Iran’s oil exports. Gold surged past $3,200 an ounce, touching a record $3,245.28, as global recession fears deepened amid the escalating US-China trade war and a weaker dollar.
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