Naira Climbs to N1,442/$ in Forex Market
The naira climbed against the US dollar, trading at N1442 at the Nigerian foreign exchange market due to enhanced US dollar volume available for international payments.
Analysts said the recent FX intervention sales by the Central Bank have strengthened forex market liquidity, with the local currency recording its third daily gain week to date.
At the unofficial FX market, Bureau de Change (BDC) operators are seeing inflows from remittances to support market supply.
The market-wide improved FX supply reduced stress on the naira, and the market reported inflows from international oil companies and exporter flows.
On Wednesday, the spot FX rate touched an intraday high of N1445.5000 per dollar at the official window, which translates to about N10 gains from N1455 quoted the previous day.
The FX trend suggests the market was able to accommodate aggregate FX demand at the official rate for foreign payments. Some transactions were executed at an intraday low of N1436.5000 as the FX liquidity surfeit kept exchange rate movement range bound.
The CBN official reported that the naira appreciated 0.24% to ₦1,442.92/$ and edged up 0.08% to ₦1,473/$ in the parallel market, reflecting easing pressure and a broadly improving sentiment toward the local currency in both the tightly managed official segment and the demand-driven black market. MTN Nigeria Sets to Pay Shareholders Interim Dividend
