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Brent rebounds after losing momentum

On Tuesday, Brent gained 0.27% to trade at $82.62pb after a 1.38% drop in the previous day’s session ($82.40pb) as the Chinese attempt to prime their economy after the failure of the real estate behemoth (Evergrande). In the near term, we expect the price of oil to remain bullish, hovering around $80-85 per barrel on lingering supply.

Naira crashes to N1470/$ at the parallel market as CBN vows to clear FX backlog

The naira’s devaluation in the official market and the parallel market has worsened, raising concerns about Nigeria’s exchange rate stability. Plunging by 33.19% to N1,348.63 in the NAFEM window and losing 3.40% to N1,470 at the parallel market, the spread between the rates has narrowed to 9% on January 29 from 60.31% on January 26, 2024. Dollar illiquidity and strong FX demand are fueling the naira’s sharp decline, exacerbating Nigeria’s FX woes. In response to the FX crisis, the CBN plans a $500 million injection into the FX market to clear a part of the backlog. It claims to have cleared most of the international airline forex arrears.

These and other burning economic issues were discussed on Channels TV Business Morning Programme by FDC Senior associate, Dumebi Oluwole.

Click the link to watch the video.