Naira ‘Swings Right’, Touches Intraday Low of N1,345
The naira swung right against the US dollar, extending its daily rally in succession on the back of sufficient FX liquidity at the official window, according to updated data from the Central Bank of Nigeria on Wednesday.
Spot rates traded mixed at the official and parallel market following the authority approval of $150k FX sales for Bureau de Change (BDCs) operators that have been officially licensed.
At the CBN window, the local currency gained 0.15% to ₦1,348.95/$ while rate was steadied at ₦1,426/$ in the parallel market, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.
Latest update from the Apex Bank showed that Nigeria’s gross external reserves edged higher to $47.376 billion, up by $351 million from $47.025 billion on the previous record.
FX receipts from hydrocarbon sales and remittances, apart from other inflows from across other sources, have been boosting Nigeria’s foreign positions.
In the global commodity market, Oil prices continue to hold firm, with ICE Brent trading just below $70/bbl as persistent uncertainty over how talks between the US and Iran evolve.
The price rise came after nuclear talks between the US and Iran in Oman failed to reach an agreement. There are reports that the US administration has been considering seizing sanctioned tankers carrying Iranian oil.
Market concerns increased further when the US Department of Transportation advised American commercial ships to avoid Iranian waters. This warning raised fears that the situation could get worse.
