MON APRIL 07 2025-theGBJournal| Nigeria’s official FX rate plummeted by 2.8% to N1,630.75/US$ Monday, extending its negative performance despite sustained Central Bank of Nigeria (CBN) intervention.
By close of trade Friday, the currency had depreciated by 1.93% to close at N1,567.02/US$1.
In the parallel market, the Naira also weakened, losing 0.64% to settle at N1,560/US$1.
The pressure on the Naira during the week reflected broader concerns in the global financial markets, as escalating trade tensions triggered by unilateral US actions on trade tariffs, which have elicited a retaliatory response from China with tariffs of 34% on the US, dampened investor sentiment and heightened the risk of a global recession.
Nigeria faces potential vulnerabilities in the foreign exchange market, costs of imported goods, and with government revenues, especially if oil prices continue their decline and the brewing trade war increases global inflation.
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