#Naira Slips To ₦1548/$ Amid FX Pressure As Oil Prices Tumble On Iran Vs U.S. Tensions
The Genius Media Nigeria reports that Nigeria’s foreign reserves dip below $37.7bn as rising dollar demand pressures local currency; crude oil crashes over 6% after Iran strikes U.S. base
The naira weakened slightly against the U.S. dollar on Monday, closing at ₦1,548.52 per dollar at the Central Bank of Nigeria’s (CBN) official foreign exchange window. The modest decline followed sustained demand from corporates for foreign currency, creating mild pressure despite an otherwise liquid market.
Trading data showed the USD/NGN pair fluctuated between ₦1,545.00 and ₦1,551.00 during the session. The currency slipped by seven basis points as traders reacted to tightening FX conditions and eroding external buffers.
CBN figures confirmed Nigeria’s gross external reserves dipped to $37.663 billion on Friday, marking another contraction in the country’s dollar stockpile. Analysts attribute the decline to the apex bank’s continued FX interventions to support exchange rate stability amid persistent demand.
Market watchers suggest that barring unforeseen economic or geopolitical shocks, the naira is likely to hover within its current trading band. Expectations of further interventions or monetary adjustments are muted for now, as policymakers prioritize currency stability and investor confidence.
Meanwhile, global oil markets experienced a sharp downturn following Iran’s missile attack on a U.S. military base in Qatar, escalating tensions in the Gulf. Despite the military confrontation, Iran refrained from obstructing tanker movements through the vital Strait of Hormuz, easing fears of an immediate supply disruption.
Brent crude futures plunged by $4.90, or 6.3%, to settle at $72.19 per barrel, while U.S. West Texas Intermediate (WTI) fell by $4.60, or 6.2%, to $69.23. The price slump reflected a recalibration of risk premiums as traders assessed the limited direct impact on oil infrastructure.
The restraint shown by Iran in avoiding energy targets helped limit wider market panic, but volatility remains elevated as geopolitical risks intensify. Crude oil price forecasts remain uncertain, with analysts closely monitoring regional developments for any potential escalation that could affect global supply.
In response to rising tensions, gold prices climbed as investors sought refuge in traditional safe-haven assets. Spot gold rose 0.4% to $3,382.42 an ounce, reflecting heightened risk aversion in the face of Middle East instability.
The twin pressures of global oil market volatility and local FX demand continue to shape Nigeria’s macroeconomic outlook. Policymakers face the challenge of defending the naira while navigating external shocks that threaten fiscal and monetary stability.
