Naira Firmer Against U.S. Dollar, FX Spread Narrows to N45
The Nigerian naira closed firmer against the US dollar (USD) at the foreign exchange market on Tuesday, reflecting improved liquidity conditions in the official window.
According to daily FX data obtained by MarketForces Africa, the local unit gained 0.06% to N1,330.4737 per US dollar at the Nigerian Exchange Market (NFEM), down from N1,331.3292 the previous day.
Transactions were executed between N1,327.5000 and N1,331.5000, representing a moderate intraday improvement from Monday’s market record.
US dollar liquidity improved as financial institutions’ activities at the interbank FX window improved, resulting in higher turnover.
The Central Bank daily FX data showed that interbank turnover increased by about 226% to $80.582 million on Tuesday, from $24.731 million in the previous trading session.
In the parallel market, the naira surged 0.36% to N1,375.00 per US dollar, narrowing the spread between the two rates to about N45 from N49.
The official FX rate also firmed against the British pound, settling at N1,760.62, and the euro at N1,509.56, investment firm AIICO Capital Market Limited said in its FX update. In the parallel, the naira firmed against the pound to N1,855.00 and held at N1,550.00 against the euro.
Nigeria’s gross external reserves rose to $54.91 billion from $45.50 billion at the start of the year, supporting the naira appreciation.
Oil is traded around $100.19 per barrel, US WTI close around $95 per barrel. Gold rose 0.38% to $4,190.30 an ounce, recovering part of Monday’s fall to a seven-week low, as bets on an October Fed rate rise held near 70%. Oil Prices Ease as Gulf Exports Rebound, Ceasefire Uncertain
