Business & Economy

Naira Depreciates Further Against USD as Crude Oil Prices Crash Further

In line with our expectations, Naira depreciated further at the Investors and Exporters FX Window (I&E FXW) by 0.39% to close at N383.00/USD as crude oil prices, especially bonny light which fell further to a new low of USD21.41 per barrel on Thursday, April 2, 2020. Similarly, Naira depreciated further against USD at the Bureau De Change and the parallel (“black”) markets by 2.53% and 1.22% respectively to close at N405/USD and N415.00/USD respectively.

However, NGN/USD closed flat at the Interbank Foreign Exchange market, at N358.51/USD amid weekly injections of USD210 million by CBN into the foreign exchange market: USD100 million was allocated to Wholesale Secondary Market Intervention Sales (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisible.

Elsewhere, the Naira/USD exchange rate rose (i.e Naira depreciated) for most of the foreign exchange forward contracts: 2 months, 3 months, 6 months and 12 months rates appreciated by 0.24%, 0.53%, 1.48%, and 3.01% respectively to close at N389.64/USD, N393.11/USD, N405.79/USD, and N435.26/USD respectively. However, forward contract for 1 month depreciated by 0.08% to close at N386.32/USD; while spot rate remained flattish at N361.00/USD.

Advertisement

In the new week, we expect depreciation of the Naira against the USD across the market segments amid lower crude oil prices.

Cowry Asset Management Limited

Facebook Comments
Advertisement
Brand News Day

Recent Posts

How To Create Profitable Ice Cream Business In Nigeria Despite Challenges

Starting an ice cream venture in Nigeria presents strong profit potential for entrepreneurs who can…

3 days ago

WARC Unveils Multiplier Playbook: The CMO’s Guide To Integrating Brand And Performance Advertising

May 19, 2026 – There is a “say-do gap” in Brand and Performance Advertising: most…

3 days ago

Nigeria Files N66.4 Billion Tax Fraud Charges Against Saipem Contracting, Directors

The Federal Government of Nigeria has arraigned Saipem Contracting Nigeria Limited and two of its…

3 days ago

Nigerians Prioritise Mobile Data Over Food As Annual Consumption Hits 5.4 Million Terabytes, Report Reveals

A growing digital dependency is redefining everyday survival in Nigeria, where access to mobile data/mobile…

1 week ago

Global Ranking, Local Identity: How Guinness Conquered Nigeria By Becoming Nigerian

Guinness has ranked Nigeria as its third-largest market worldwide, reinforcing the country’s growing importance to…

2 weeks ago

Stanbic IBTC Reinforces Leadership In Trade Finance At GTR West Africa 2026

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings and a member of Standard Bank…

2 weeks ago

This website uses cookies.