No be small matter, my people! Naira don close for week with serious wahala for both official and parallel market. E be like say na supply wahala dey vex am, as demand dey pressure the forex market like say dem dey pursue am.
For the Nigerian Autonomous Foreign Exchange Market, naira don lose ground wey e gain before, settle for N1,421.63 to dollar, from N1,417.94/$ wey e dey last week. E no stop there, for parallel market, naira don carry sharp drop enter N1,487.00/$ too. Wetin dey happen for dis dollar matter na correct gbege, if you ask me.
AIICO Capital confess say trading during di week na serious rollercoaster ride, as e dey swing way and come. Dem dey point hand to di high demand wey dey kill supply for di market wey cause dis palava. Monday, naira don drop by 16 basis points because demand don overpower wetin dey available. But small recovery show face on Tuesday, as liquidity take boost am slightly by 7 basis points, keeping am within N1,418–N1,423 range. Na so di week take begin, dem dey call am cautiously stabilizing vibe.
But you know how e be for naija, by di time week dey close, naira don gather serious palava of 26 basis points wey be N3.68 decline, land for N1,421.63/$. Na weaker supply levels dem blame am, so e be like naira dey hold on for dear life.
Despite di wahala for naira, dem get some small good news on di external reserves side. AIICO dey report say Nigeria’s external reserves don increase by $111.17 million during di week, make am reach $46.01 billion. This one dey give some small confidence and fit buffer di short-term wahala.
Meanwhile, Cowry Assets Management no dey sugarcoat am, dem talk say naira don weaken across all market segment, as di structural challenges no wan gree gree. Dem talk say naira drop by 0.26% for official side and 0.72% for parallel side, wey dem confirm say na persistent demand wahala and the FX imbalance dey cause am. But dem still confirm say external reserves don show small improvement, thanks to steady oil money, better non-oil inflow, plus trade surplus wey dem dey enjoy.
As we dey look forward, analysts dey maintain cautious look. AIICO dey yarn say if supply no change, we fit expect naira go dey trade for dis range for some time, as steady inflows and reserve go support am. Cowry Assets sef dey project say pressure no go end soon, as dey expect FX demand wahala go still dey on top naira, but rising external reserves fit give am small support.
Overall, market watchers dey expect naira go remain for predictable range for di coming week, with di movements dey largely depend on FX supply conditions and liquidity matter for official market. So, make we dey watch how e go play out, no be small thing!
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