The Nigerian Naira showed a slight improvement at the official foreign exchange window on Monday despite a series of international spending restrictions Deposit Money Banks (DMBs) are placing on their Naira cards.
The Dollar to Naira exchange rate remained largely unchanged at the Central Bank of Nigeria (CBN)’s section of forex. Dollar to Naira exchange rate stood at N416.3, up from N416.34 it was sold on Thursday.
The Pound Sterling to Naira exchange rate improved from N547.612 to N545.7693. While the Euro to Naira exchange rate appreciated to N458.5128.
At the black market, the unregulated forex section, the Naira remained largely pressured, declining to N581 against the US Dollar.
Stakeholders are projecting another round of forex scarcity, especially after Zenith Bank and United Bank for Africa reviewed downward their international spending on Naira cards. That was a week after the CBN announced N65 per $1 repatriated via the Investors and Exporters FX Window.
Foreign Reserves
Nigeria’s foreign reserves declined by $116.352 million $39.871 billion posted on March 3, 2022 to $39.755 billion, according to the latest report released by the central bank.
Despite the recent surged in oil prices, Nigeria, Africa’s largest exporter of the commodity failed to augment its foreign reserves. This, experts have attributed to the nation’s economic structure, subsidy spending and hight cost of servicing international debt.
Crude Oil
Oil prices have started pulling back from their record highs after reports that Russia and Ukraine are now willing to discuss the war and find a temporary solution to the age-long dispute.
Brent crude oil pulled back from $111 a barrel it opened the daya to around $109 a barrel. The U.S WTI also dipped on the news, trading at $102 a barrel.
Cryptocurrency
The entire crypto space remained bearish and expected to extend decline once the US Federal Reserve raise interest rates this week. Bitcoin remained below $40,000 a coin on weaker demand as institutional investors continue to stay on the side line to assess global happenings.