Naira Rises as Nigeria’s Gross External Reserves Top $53bn
The Nigerian naira rallied against the US dollar in the official foreign exchange market on Wednesday, reflecting the absence of significant international payment pressures.
The local unit closed at N1343 per US dollar at the Nigerian Foreign Exchange Market (NFEM), down from N1346 at the previous close, with significant FX reserves to ward off FX payment pressure.
FX activities were conducted during the trading session at transaction prices ranging from N1341 to N1346.5000 per US dollar. Activities by financial institutions as market makers spiked, sharply lifting FX turnover.
NFEM interbank FX turnover rose to $235.991 million on Wednesday, about a 55% increase from the $152.592 million posted on Monday. The number of deals at the interbank FX window also increased to 213 from 144 previously reported.
Nigeria’s gross external reserves topped $53 billion this week, driven by sustained accretion from multiple sources, including hydrocarbon sales and remittances.
Updated data from the Central Bank showed that gross external reserves climbed by $280 million to $53.112 billion on Tuesday, up from $52.832 billion last week.
Oil prices extended a decline as Asian stocks edged higher Wednesday on receding concerns about another military flare-up between the United States and Iran, while traders were also nervously awaiting Nvidia’s earnings and key US inflation data.
Both major crude contracts have tumbled more than 8 per cent this week as Tehran and Oman edge towards a deal to partially reopen the Strait of Hormuz, while signs of renewed diplomacy to end the Middle East crisis added to the upbeat mood.Insurance Stocks Drive NGX Trading Volume, Turnover Drops
