Dollar strengthens, Naira Slides to ₦1,375 in official market

The naira has lost value again against the US dollar, closing at ₦1,375/$ in the official foreign exchange market on Monday.

According to the Central Bank of Nigeria (CBN), this is a drop from ₦1,364/$ recorded on Friday. The dollar is currently stable globally, but tensions in the Middle East are affecting financial markets.

Because of these global issues, investors are being careful. Rising oil prices and expectations of higher inflation in the world are also putting pressure on currencies like the naira.

What is happening in the market
The naira traded between ₦1,367 and ₦1,375 per dollar during the day.
About $51.17 million was traded in 67 deals.

This is lower than Friday’s trading volume of $78.15 million.
Oil and global factors
Brent crude oil rose to about $104.55 per barrel.
US crude (WTI) was around $98.17 per barrel.
Oil prices are rising because of fears that conflict in the Middle East could affect supply.

Why the naira is affected
Global investors are buying safer assets like the US dollar.
Higher oil prices can help Nigeria earn more dollars, but they can also increase inflation.

Nigeria’s foreign reserves have also dropped by about $855 million in five weeks, now at around $48.33 billion.
What experts are watching
US inflation data, which may affect interest rate decisions.

If US interest rates stay high, the dollar may become stronger, putting more pressure on the naira.

Nigeria’s Central Bank expects reserves could grow to about $51 billion by the end of 2026, if conditions improve.
Summary

The naira is weakening mainly because of global uncertainty, rising oil prices, and pressure from a stronger US dollar. However, oil earnings and government policies may help stabilise it in the future.