Naira Rallies Market-Wide on Robust FX Liquidity
The naira showed significant resilience and appreciation in the foreign exchange market, rising by 0.24% to ₦1,380.58 per dollar at the Nigerian foreign exchange market (NFEM).
The local currency exchange rate strengthened as foreign payments declined further, amid prevailing favourable trading conditions backed by a higher dollar supply in the official market.
Maintaining a positive outlook, Bradstreet FX traders reported that the local currency appreciated against the greenback as informal demand stabilised during the week.
The exchange rate hovered around ₦1,400 per dollar on Friday, from ₦ 1405. This situation indicates sustained demand for the naira in the formal sector, despite little movement in the informal market.
Overall, the trends observed reflect growing confidence in the naira’s stability and its potential for further advancement in the coming days, amid sustained hot money flows from foreign portfolio investors.
Forex market liquidity was bolstered by exporters and non-bank corporate inflows, in addition to other hard currency sources, analysts said, noting that the Apex Bank scaled back its FX intervention during the week.
Meanwhile, the CBN data showed that Nigeria’s gross external or foreign reserves ended the week at $49.48 billion, down about 0.61% from the previous week’s close of $49.79 billion.
Oil prices decline with Brent crude hovering at $100 at the last look, while US West Texas Intermediate (WTI) was around $93 per barrel on Friday.
This movement was attributed to easing fears of immediate supply disruptions following diplomatic efforts between the U.S. and Iran, despite persistent concerns about the risk of conflict.
Precious metals saw divergent performance, with most advancing on renewed investor interest and safe-haven demand, while gold, platinum, and lead retreated amid profit-taking and subdued industrial demand. Zenith Bank Hits 52-Week High, Market Cap Now N4.2trn
