Naira Rises Against US Dollar as Forex Trade Volume Slows
The naira reclaimed part of its lost exchange rate value in the official market as volume of US dollar volume transacted declined on the day. Spot data from the FMDQ platform showed the naira appreciated by 0.68%, closing at ₦1,678.93 per US dollar at the official market.
The naira exchange rate had printed above N1690 per US dollar due to an insufficient level of foreign currency in the official market. Halting three days of downward pricing, the naira gained N11.44 on Tuesday amidst a series of post- devaluation unmet expectations.
Analysts identified weak US dollar liquidity at the Nigerian autonomous foreign exchange market as a headwind to naira valuation. >>> Naira Plummets to N1690/$ after CBN Priced Spot Rate High
But, latest auction spot rates by the Central Bank of Nigeria (CBN) showed the apex bank has become comfortable seeing official exchange rate trading within N1600 and N1700 per greenback.
On Tuesday, total daily turnover in the official FX market declined to 128.59 million dollars on from 173.14 million dollars recorded on Monday. At the Investor’s and Exporter’s (I&E) window, the naira traded between N1,698 and N1,631 against the dollar
In the parallel market, the naira closed at ₦1,735 per US dollar as demand for invisible transactions remained stable this week. External reserves climbed to $40.274 billion this week amidst uncertainties in the global commodities market.
Prices of crude oil experienced a slight increase after Ukraine launched longer-range, U.S.-supplied missiles at Russia. As a result, Brent crude rose to $73.83 per barrel, while WTI increased to around $69.65.
Likewise, Gold prices advanced for the second consecutive session, reaching a one-week high as escalating tensions between Russia and Ukraine triggered a demand for safe-haven assets, with investors looking for important indicators regarding the Federal Reserve’s interest rate strategies.
Gold was valued at about $2,628.20 per ounce in the commodities market at the close of trading hour on Tuesday. #Naira Rises Against US Dollar as Forex Trade Volume Slows
