The Nigeria’s foreign exchange reserves has declined in recent weeks at the weekend which has heightened the fears of further depreciation in naira.
Nigeria’s foreign exchange (forex) reserves dropped by $47.33 million to close weekend at $35.77 billion. Crude oil price has also declined by 4.4 per cent from $43.68bbl to $41.74bbl amid fears upsurge in COVID-19 cases might trigger a new wave of economic lockdowns.
Senior Research Analyst, FXTM, Lukman Otunuga, said;
“Looking at the technicals, WTI Crude is under pressure on the daily charts. If prices are unable to break away from the sticky $40 regions, the next key point of interest remains around $38. A weekly close above $41.50 could pave a path towards $43,”
“In times of uncertainty, everyone wants a juicy piece of the world’s most liquid currency. As coronavirus cases rise in Europe and other parts of the world, the flight to safety is likely to boost appetite for the dollar. This is bad news for many emerging markets currencies, especially those with high dollar-denominated debt,”