Naira Plunges Against Western Currencies Amid Record Dollar Demand

Nigeria's naira depreciated against major Western currencies on Thursday due to record demand for US dollars at the official window, outpacing FX liquidity. The local unit value declined by N1.03 to N1,364.88 per US dollar at the official forex market from ₦136.8491 per greenback quoted the previous day.

Intraday transactions were consummated between N1363 and N1366.5000 per US dollar at the Nigerian Foreign Exchange Market (NFEM), according to data released by the Central Bank. The NFEM interbank FX turnover jumped to $98.804 million on Thursday, up by more than 31% from $75.357 million the previous day.

The parallel market saw the naira drop to ₦1,420.00 to the US dollar due to an imbalance between foreign currency demand and supply. Oil prices rose on Thursday as investors weighed the uncertain outcome of negotiations between Iran and Oman over shipping through the Strait of Hormuz, with Brent crude futures climbing 83 cents, or 1.04%, to $80.28 per barrel.