Naira Gains 0.3 Pips as Interbank FX Turnover Soars By 427%
The naira recorded a 0.3 pip gain against the US dollar at the Nigerian foreign exchange market (NFEM), amid a significant increase in financial institutions’ activity in the official market.
Data released by the Central Bank of Nigeria (CBN) showed the spot FX rate closed at N1322.5893 to the US dollar, a mild appreciation from N1332.9728 quoted in the previous session.
FX trades were executed between N1330 and N1234.5000, signalling improved US dollar liquidity during the intraday trading session.
Interbank FX turnover surged to $490.855 million on Wednesday, up approximately 427% for the day, driven by increased activity from market makers. According to the CBN, the number of FX deals at the interbank market increased to 172 from the count reported on Tuesday.
In its FX update, AIICO Capital Limited reported that the local unit also gained 0.03% against the pound at N1,765.55/£ and the euro at N1,491.57/€.
In the parallel market, the dollar fell 0.07% to N1,374.00, the pound fell 0.82% to N1,820.00 and the euro fell 1.63% to N1,510.00. The gap between the two markets narrowed to 3.11% from 3.15%. Year to date, the dollar is down 7.19% against the Naira at NAFEM
“Expect the Naira to stay stable at the official window, with the parallel gap staying near 3%. Oil above US$100 should keep dollar supply steady and support the Naira”, AIICO Capital Limited said.
Nigerian Naira Softens Against US Dollar, Euro, British Pound
