Naira Climbs to N1475, FX Inflow Rises to $981m
The Nigerian local currency, the naira, rose against the US dollar again at the official window, staying on track amidst growing bullish predictions.
The official exchange rate has maintained the momentum after it breached N1500 psychological barrier – now heading toward the next breakout.
Updated FX from the Central Bank of Nigeria (CBN) revealed that the naira appreciated 0.07% to ₦1,475.34, demonstrating continued strong demand for the local currency.
The spot rate touched an intraday high of N1480 per dollar, versus N1486 in the previous day, which suggests the absence of FX pressures in the official window.
FX rate hit N1470, its lowest level during the day, as data showed that FX inflows surged to about $1 billion at the official window last week.
In the parallel market, the naira depreciated 0.28% to ₦1,502 per dollar. Naira’s performance was primarily driven by foreign portfolio inflows and improved supply from exporters.
In a note, Coronation Merchant Bank Limited reported that FX inflows rose to US$984.10 million in the Nigerian foreign exchange market last week, compared with US$605.00 million in the prior week.
In terms of inflow composition, foreign portfolio investments accounted for the largest share at US$318.10 million, followed by exporters and non-bank corporates.
The supply side was bolstered by inflows from the CBN, foreign direct investments and other sources.
Oil prices were supported by a combination of falling US crude inventories and heightened geopolitical risks. Recent Ukrainian drone strikes on Russian energy facilities have led Moscow to announce restrictions on fuel exports through to year end.
Although the curbs apply to a relatively small share of refined product shipments, they highlight the ongoing vulnerability of Russia’s oil sector to attacks by Ukrainian forces.
Brent crude closed the week at US$70.13 per barrel, adding 5.17% on the week, the largest weekly move since June. The running year-to-date average settled at US$69.79/bbl, 12.60% below the average close in 2024.
Bonny Light closed the week at US$70.90/bbl. gaining 1.79% week on week. On Tuesday, Brent traded below $69. #Naira Climbs to N1475, FX Inflow Rises to $981m#
