Naira Loses Against US Dollar, FX Reserves Cross $33bn
The Nigerian naira lost against the US dollar across forex markets on Thursday due to speculative demand for foreign currency. The apex bank has slowed down FX sales to boost the supply side, causing naira pricing to get messy ahead of inflation data.
Though Nigerian oil production reduced to 1.45 million barrels per day, gross external reserves continue to climb, according to data from the Central Bank of Nigeria (CBN).
Details from the CBN website showed that gross external reserves crossed $33 billion in June, 2024, following successive inflows. The naira value dipped against the dominant US dollar in the parallel market because of absence of FX market intervention.
According to information from FMDQ, exchange rate dropped by 0.18% against the US Dollar, closing at a rate of ₦1,476.24. On the Central Bank of Nigeria (CBN), gross external reserves climbed to $33.159 billion. The naira hits intraday highs of N1,500 and intraday lows of N1,400.
Today, the naira depreciated by 1.02% in the parallel market, ending the day at an average of N1,480 per US dollar as demand continues to outpace supply.
The apex bank has stopped defending the naira in the informal currency market, asking Bureau de Change operators to register their businesses. In the global commodity market, Brent crude gained 0.05% to trade at $82.64 per barrel, while WTI crude futures traded at $78.20 per barrel.
The increase in Brent crude prices was attributed to concerns over US crude stockpiles, which unexpectedly rose by 3.73 million barrels according to EIA data, contradicting expectations of a decrease by 1.55 million barrels. #Naira Loses Against US Dollar, FX Reserves Cross $33bn Naira Steadies as Banks Issue Update on FX Purchase
