Naira Sustains Rally as Interbank FX Turnover, Deal Counts Dip
The naira rose against the US dollar at the Nigerian foreign exchange market (NFEM) on Wednesday as data showed interbank FX trading moderated.
The naira gained 0.40% at the official foreign exchange window, closing at ₦1,347.53/$, down from ₦1,352.87/$, according to the Central Bank of Nigeria (CBN).
The local unit rally marked the second sharp daily gain after the Apex Bank FX intervention to boost US dollar supply, selling $500 million to banks earlier in the week.
Exchange rates hovered between ₦ 1,342 and ₦ 1,363.5000 during the intraday trading session, reflecting a sharp moderation in US dollar pressure compared with earlier in the week, when the intraday rate reached ₦ 1,395.
Financial institutions’ activity at the NFEW window fell on Wednesday, according to daily FX data the authority released. Interbank FX turnover was less than half of the previous day’s record, and the number of deals also fell.
By the figures, interbank FX turnover fell more than 55% to $244.608 million, down from $543.740 million the previous day.
In the parallel market, the naira weakened 0.36% to ₦1,390/$, up from ₦1,385/$, widening the gap between the two markets to 3.15% from 2.37%.
At the NFEM, the pound fell 0.69% to ₦1,790.86, and the euro fell 0.55% to ₦1,500.34, according to official data. In the parallel market, the pound rose 0.83%, and the euro rose 0.33%.
In the commodity market, oil prices eased slightly while yellow metals inched higher. Gold rose 0.95% to US$4,063.80/oz, from US$4,025.45.
Brent crude fell 1.04% to US$110.13/bbl, from US$111.29. Oil eased as investors awaited the outcome of talks in Tehran, but renewed attacks on Saudi Arabia kept prices elevated.
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