New Week, more weakness; Exchange rate falls again across markets

The naira fell against the U.S. dollar at both the official and parallel market on Monday 13th November 2023 marking a reversal from the gain achieved last Friday.

The domestic currency depreciated 1.92% to close at N795.41to a dollar at the close of business on Wednesday, data from the NAFEM where forex is officially traded, showed.

This represents an N15.27 loss or a 1.92% decline in the local currency compared to the N780.14 it closed on Friday.

• The intraday high recorded was N1099.01/$1, while the intraday low was N701.00/$1, representing a wide spread of N398/$1. 

• According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $123.25 million, representing a 46.69% increase compared to the previous day. 

Similarly, the naira weakened at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.44%, quoted at N1135/$1, while peer-to-peer traders quoted around N1124.30/$1.

The Central Bank of Nigeria (CBN) has been trying to manage the naira's exchange rate through several measures, however, these measures have not been able to prevent the naira from depreciating against the dollar.

Saudi Arabia to invest in Nigeria's refineries support forex reforms:
The Government of Saudi Arabia on Friday announced plans to invest in the rehabilitation of Nigerian refineries.

The Kingdom also said it was ready to support Nigeria's foreign exchange reforms through a substantial deposit aimed at enhancing the country's forex liquidity.

The commitments were made during a bilateral meeting between Saudi Crown Prince, Mohammed bin Salman Al Saud, and President Bola Tinubu at the Saudi-Africa Summit in Riyadh.

Nigeria's Minister of Information and National Orientation, Mohammed Idris, disclosed this in a statement he signed on Friday titled 'Saudi government to invest in Nigeria's refineries, support Central Bank reforms.'

Crown Prince bin Salman, who lauded President Tinubu's economic reforms, pledged Saudi Arabia's backing in ensuring that Nigeria achieves its potential as Africa's leading economy.

He also identified Agriculture and Renewable Energy as potential sectors for investment, contributing to Nigeria's food and energy security.

These announcements were further underlined by the prince's revelation that Saudi Aramco, the kingdom's state-owned oil entity, will lead the refinery investment efforts.

The project's completion is targeted within a two-to-three-year period, promising a significant boost to Nigeria's refinery capabilities.

Moreover, the Crown Prince acknowledged Nigeria's role and partnership with OPEC+, expressing gratitude for its consistent support.

On his part, President Tinubu expressed his gratitude for Saudi Arabia's proposed investments and reforms support.

He assured the Saudi leader of Nigeria's commitment to prudent management and strict oversight of the investments.

The two leaders also agreed to collaborate closely over the next six months to create a detailed road map and blueprint to actualise the agreed investments and initiatives.