Naira Rises to N1361/$, NFEM Interbank FX Turnover Slides
The naira rose against the US dollar on Tuesday as demand for international payments declined, with data showing a moderate slide in interbank FX turnover.
Broadstreet analysts maintained a bullish outlook for the local currency, an expectation anchored on sufficient foreign external reserves and inflows from hydrocarbon sales.
According to daily FX data released by the Central Bank on Tuesday, the spot FX rate strengthened to N1361 per dollar, reflecting robust FX liquidity at the Nigerian Foreign Exchange Market (NFEM).
The official rate hovered between N1359.5000 and N1365 per dollar on eligible transactions conducted during the intraday trading session.
The Central Bank FX rate closed at N1361.0497 per dollar as interbank FX turnover declined to $169.822 million across 168 deals, from $177.927 million in the previous day.
In the parallel market, the local currency declined to N1380 per dollar as informal sector demand for foreign currency increased today, according to channel checks.
Oil prices shot up to more than $100 a barrel at the end of February, and—roughly three months later—spot prices are still holding around $100 a barrel.
The capital markets remain hopefully that the US and Iran will reach an agreement. Oil is a little softer and bond yields are lower. The dollar is mostly a little softer but within well-worn ranges.
The dollar continues to ease slowly against crosses as US -Iran continue to engage in peace talks. Central Bank Raises N7.30trn from OMO Bills in May
