Naira Rises to N1,343 on Sharp Interbank Liquidity Surge
The Nigerian local currency, the naira, gained against the US dollar at the official foreign exchange market amid a surge in FX liquidity.
Interbank liquidity increased sharply to N141.315 million across 175 deals, according to FX update published by the Central Bank, a 260% surge from N38.256 million the previous day.
High FX inflows, boosted by foreign portfolio investors’ funds channelled into OMO bills, increased demand for naira. Hence, intraday spot FX rates hovered between N1334 and N1350 on Tuesday, reflecting the absence of pressures from international payments.
On Tuesday, the naira appreciated across both exchange channels, rising 0.92% to ₦1,343.77/$ at the official window and 0.15% to ₦1,371/$ in the parallel market.
Elsewhere, oil prices continued to fall on Tuesday as hopes of more peace talks between the US and Iran eased concerns about further disruptions to energy supplies.
The price of global benchmark Brent crude is down 3.8% so far in Tuesday trading to $95.54 a barrel, while US-traded West Texas Intermediate is down 6.1% to $92.85.
The falls come after oil prices jumped above $100 a barrel on Monday, before falling back, following US President Donald Trump’s order to blockade Iran’s ports after negotiations failed between the two sides at the weekend.
Trump later said that Tehran had contacted Washington about a potential agreement.
Speaking to reporters outside the White House on Monday, he said, “I can tell you we’ve been called by the other side. They’d like to make a deal very badly.”
Separately, the New York Times reported that Iran had proposed suspending uranium enrichment for up to five years, an offer rejected by the US, which insisted on 20 years.
The report, which cited Iranian and US officials, also said Washington and Tehran had traded proposals for suspending Iran’s nuclear activity during talks in Pakistan, but remained far from an agreement.
But it added that the discussions suggested there may still be a path to a peace deal, with a possible second round of face-to-face talks. Guinness Nigeria Hits 52-Week High on Sharp Intraday Gain
