The Naira also traded between N200 and N210 at the interbank market as the currency witnessed its worst week in history, hitting an all-time low twice.
Oil-dependent economies have seen their currencies bashed by falling global oil prices. The Naira, one of such currencies, has therefore struggled against the dollar despite measures by the CBN to maintain the currency value.
However, the death of King Abdullah of Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries (OPEC), may come as good news for the Naira. Following the monarch’s death, speculations have become rife that oil prices could rebound. This is because OPEC’s decision not to cut production to save the world from the current oil glut, which is affecting prices, was spearheaded by Saudi Arabia. The country is the most influential member of
the cartel, and with the king gone, a new king may push for a policy change.
This speculation, should it prove helpful to the Naira at all, may however be short-lived, as crowned prince Salman bin Abdulaziz, according to those close to the royal family, is certain to further his father’s policies.
As at Sunday, January 25, the Naira exchanged for a dollar at 190.60
USD/NGN average daily bid prices, Dec. 26 – Jan. 25
source: oanda.com
source: oanda.com
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