GoldenNewsNG
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us
No Result
View All Result
Golden News
No Result
View All Result

BREAKING: Despite Higher Forex Reserves, Naira Remains Under Massive Pressure

Enudi Golden by Enudi Golden
January 11, 2024
in business, Featured, Headline, World News
Reading Time: 3 mins read
Latest CBN News Update On New Naira Notes Today
11
SHARES
Advertisements

Despite Higher Forex Reserves, Naira Remains Under Massive Pressure

GoldenNewsNg reports that the naira remained under massive pressure across official and parallel markets despite continuing increase in Nigeria’s foreign exchange (forex) reserves.

BREAKING: Despite Higher Forex Reserves, Naira Remains Under Massive Pressure

READ ALSO

Free Vocational & Technical Training at UNIBEN in Partnership with ITF (Apply Here)

FG Approves N45,000 Monthly Grant for Students Under N120 Billion TVET Plan

The naira depreciated by 0.2 per cent at the official Investors and Exporters (I & E) Window and fell further by 0.5 per cent at the parallel market. Nigeria’s forex reserves, meanwhile, rose for the second consecutive week to close at $39.87 billion, an increase of $25.56 billion.

The naira depreciated N416.67 per dollar at the I & E Window as turnover on the official window declined by more than 20 per cent. At the parallel market, the naira declined to N577.00 per dollar, as large unmet demand continued to sustain wide gap between the official and parallel rates.

Most analysts said they expected the nation’s currency to remain under pressure despite the steep rise in crude oil price.

Analysts at Cowry Asset Management said they expected “sustained pressure at the I & E FX Window as the markets react to strain in forex supply despite higher crude oil prices at the international market as production output remains low”.

Cordros Capital noted that while the Central Bank of Nigeria (CBN) has enough supply to support the forex market over the short term, the naira may depreciate further in the medium to long-term as the market adjusts to market realities.

According to analysts, foreign inflows, which have dwindled in recent period, are paramount for sustained forex liquidity over the medium term, “in line with expectation that accretion to the reserves will be weak given that crude oil production levels remain pretty low”.

“Hence, we think further adjustments in the naira-dollar peg closer to its fair value and flexibility in the exchange rate would be significant in attracting foreign inflows back to the market,” Cordros Capital stated.

With global crude oil price above $110 per barrel, most analysts agreed Nigeria remained disadvantaged. Nigeria’s oil sector continues to grapple with low crude oil production in line with challenges facing the sector.

According to OPEC’s Monthly Oil Market Report (MOMR), Nigeria’s crude oil production, excluding condensates, averaged 1.40mb/d in January 2022 as against 1.32mb/d last month, 16.7 per cent below OPEC+ production agreement of 1.68mb/d for the month.

Analysts at Cordros Capital outlined that the major factors responsible for the low performance of the oil sector included the difficulties in restarting the oil wells for operation after the COVID-19 induced shutdown and infrastructure decay.

Other factors militating against the oil sector included divestments given the challenging business environment amidst companies’ move to cleaner energy sources and oil thefts.

“Overall, we do not expect a significant improvement in crude oil production over the short term, given the nature of challenges hampering production. Accordingly, we expect the government’s oil revenue performance to be underwhelming over the short term despite the rally in crude oil prices,” Cordros Capital stated.

📢 JOIN OUR WHATSAPP GROUP 📢 JOIN OUR TELEGRAM CHANNEL
Previous Post

Latest News On NMFB Loan For Today Monday 7th March 2022

Next Post

BREAKING: Buhari Orders Immediate Removal Of Buni As APC Chairman

Related Posts

Free Vocational & Technical Training at UNIBEN in Partnership with ITF (Apply Here)

Free Vocational & Technical Training at UNIBEN in Partnership with ITF (Apply Here)

A transformative opportunity has arrived for the residents of Edo State, thanks to the visionary leadership of Honorable Dr. Edosa...

Read more

FG Approves N45,000 Monthly Grant for Students Under N120 Billion TVET Plan

FG Approves N45,000 Monthly Grant for Students Under N120 Billion TVET Plan

FG Approves N45,000 Monthly Grant for Students Under N120 Billion TVET Plan   The Federal Government has confirmed that students...

Read more

Over 100 killed as Deadly floods hit Popular Market in Nigeria

100 killed as Deadly floods hit Popular Market in Nigeria

Over 100 killed as Deadly floods hit Popular Market in Nigeria Mokwa, Niger State, Nigeria — More than 100 people...

Read more

Grant for Women in Engineering – Apply for Delt-Her Women Empowerment Program 2025

Delt-Her Women Empowerment Program 2025

Apply for Delt-Her Women Empowerment Program 2025 following the guidelines below...   Developing Engineering Leaders Through Her (DELT-Her) is an...

Read more

YEIDEP Grant Hits 5.1 Million Applicants – Apply Before May 31, 2025 Deadline

YEIDEP Grant Hits 5.1 Million Applicants

YEIDEP Grant Hits 5.1 Million Applicants – Apply Before May 31, 2025, Deadline   The Youth Economic Intervention and De-Radicalization...

Read more

How to Fill the RRR/NSR 75K Cash Transfer Form in 2025: Step-by-Step Guide

RRR/NSR 75K Cash Transfer Form

 How to Fill the RRR/NSR 75K Cash Transfer Form in 2025: Step-by-Step Guide Are you looking to benefit from the...

Read more

How to Register for Conditional Cash Transfer in Nigeria (2025 Updated Guide)

How to Register for Conditional Cash Transfer in Nigeria (2025 Updated Guide)

How to Register for Conditional Cash Transfer in Nigeria (2025 Updated Guide)   With millions of Nigerians living below the...

Read more

Flood claims over 20 lives in Niger communities

Victim ...Woman, 2 children rescued, 10 persons still missing   Following a heavy downpour that occurred on Thursday, no fewer...

Read more

FG Announces N45K Monthly Stipend for Technical College Students — Here’s What You Need to Know

FG Announces N45K Monthly Stipend for Technical College Students — Here’s What You Need to Know

FG Announces N45K Monthly Stipend for Technical College Students GoldenNewsNg reports that the Federal Government has announced a new policy...

Read more

How to Apply for Yeidep Grant : Step-by-Step Guide for Nigerians

How to Apply for Yeidep Grant

Last year, my close friend Amaka was at rock bottom. She had just lost her job, rent was due, and...

Read more
Load More
Next Post
Buhari Orders Immediate Removal Of Buni As APC Chairman

BREAKING: Buhari Orders Immediate Removal Of Buni As APC Chairman

SEARCH ADS

Latest Posts

News

Niger trains 50 women, youths on livestock production

News

Flood: Niger CAN commiserates with victims

Free Vocational & Technical Training at UNIBEN in Partnership with ITF (Apply Here)
Education

Free Vocational & Technical Training at UNIBEN in Partnership with ITF (Apply Here)

FG Approves N45,000 Monthly Grant for Students Under N120 Billion TVET Plan
Education

FG Approves N45,000 Monthly Grant for Students Under N120 Billion TVET Plan

100 killed as Deadly floods hit Popular Market in Nigeria
News

Over 100 killed as Deadly floods hit Popular Market in Nigeria

Delt-Her Women Empowerment Program 2025
Headline

Grant for Women in Engineering – Apply for Delt-Her Women Empowerment Program 2025

YEIDEP Grant Hits 5.1 Million Applicants
Jobs

YEIDEP Grant Hits 5.1 Million Applicants – Apply Before May 31, 2025 Deadline

RRR/NSR 75K Cash Transfer Form
Headline

How to Fill the RRR/NSR 75K Cash Transfer Form in 2025: Step-by-Step Guide

How to Register for Conditional Cash Transfer in Nigeria (2025 Updated Guide)
business

How to Register for Conditional Cash Transfer in Nigeria (2025 Updated Guide)

News

₦75,000 CCT Process Begins – Check If You’re Eligible!

© 2024 Golden News

  • About Us
  • Advertise with Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms And Conditions
No Result
View All Result
  • Home
  • News
  • Education
  • Business
  • Jobs
  • Daily Guides
  • About Us
  • Advertise with Us

© 2024 Golden News