The naira traded around the N1,600/$ mark on Tuesday in the unofficial market and depreciated to N1,550/$ in the Nigerian Foreign Exchange Market (NFEM).

CBN data showed the Nigerian currency weakened to N1,550/$ from N1,547/$ last Friday.

The Naira’s fundamental outlook sharply blurred when oil prices fell below $70 a barrel, amid tension easing in the Middle East.

Crude oil is Nigeria’s main source of foreign exchange (FX) earnings.

President Trump announced that a complete ceasefire between Israel and Iran would take effect, possibly ending the conflict between the two nations. White House officials said Israel would only hold up its side of the ceasefire if Iran remains peaceful, and Iran has indicated compliance.

The regional geopolitical tensions in the Mediterranean continue to undermine oil-dependent currencies like the Nigerian naira. Nigeria, Africa’s leading oil producer, heavily relies on oil to boost FX inflows and fiscal revenues.

However, the CBN conducted an OMO auction to tame liquidity in the country’s monetary space, offering a certain amount across 155-day and 204-day tenors, which strongly influenced total subscriptions, worth N1.14 trillion.

The CBN ultimately allotted N1.07 trillion, with stop rates of 24.2% and 24.6%.