Naira Crossed Old Red Line at Official Parallel Markets
The Nigerian naira crossed the old red line in the autonomous official market, trading at N1,234 per US dollar as FX paparazzi began to fizzle out.
The exchange rate declined following strong historical records that raised the spot rate to NGN1150, according to data from FMDQ Securities Exchange. WPG Sacked Former MD of Eko Disco
The naira official exchange rate plunged to N1,234 at the official foreign exchange market on Monday, according to data obtained from the FMDQ. The naira exchange rate lost another 5.26 per cent from N1,169.99 per US dollar recorded at the end of the trading session on Friday.
As of Wednesday, the naira had reclaimed significant value. The FX spot was quoted at N1,072.74 after it had successfully beat the Goldman Sachs 12-month target.
The local currency benefited from the apex bank’s foreign exchange injection as well as improved sentiment that the naira would strengthen.
Demand for the US dollar had been met by the supply side in the past few weeks, until lately, when the Central Bank delayed FX sales to the informal foreign exchange market, where invisible users agreed on deals.
The Naira closed at ₦1,245 to the US dollar on the parallel market, ahead of expectations that the Central Bank of Nigeria (CBN) would sell US dollars to Bureau de Change at a rate lower than the spot market.
There was a negative outcome for oil prices in the global commodity market. WTI oil saw a decrease, falling by 0.64% to $81.69 per barrel, while Brent crude saw a decrease of 0.73% to settle at $86.65 per barrel.
