FX Spread Tapers as Naira Depreciates at Official Market
The FX spread or exchange rates gap between official and parallel market narrowed to N21.34 as the naira depreciated further at the Nigerian autonomous foreign exchange market.
Spot FX data from FMDQ trading platform showed that the Naira depreciated by 0.34% in the official window, closing at ₦1,538.66 per dollar. However, exchange rate steadied at N1560 per US dollar in the parallel market
In the official market, exchange rates fluctuated between N1,535.00 and N1,540.00 before closing at N1,538.66. The Central Bank has been settling selling US dollar to banks as way to keep market supply strong.
In spite of its effort, exchange rate has been falling, albeit, slowly. Analysts said they expect the CBN to be in the forex market to support the naira. Otherwise, the naira could fall rapidly.
FX market analysts, investment banking experts said the naira would trade within the fluctuating range as long as interest rate environment remains attractive to foreign portfolio investors.
Hot money has continued to circle around Nigeria financial market with eyes on OMO bills. Stylishly, the CBN appears to have cut back on OMO issuance with one offer in February and March.
On the back of latest round of inflows, the nation’s foreign reserve surge to $38.322 billion on Wednesday from $38.303 billion at the beginning of the week amidst oil prices swings.
In the global commodity market, oil prices inched up on Thursday, nearing a one-month high amid global supply concerns, though gains were capped by worries over the economic impact of new U.S. tariffs.
Brent crude futures rose 9 cents, or 0.1%, to $73.88 per barrel, while WTI crude gained 20 cents, or 0.3%, to $69.85. Meanwhile, gold surged to a record high as investors sought safe-haven assets amid escalating trade tensions and falling equity markets. Spot gold rose 1.2% to $3,057.12 an ounce after hitting an all-time high of $3,059.30. #FX Spread Tapers as Naira Depreciates at Official Market Seplat Energy Trades Flat Despite Price Sensitive Corporate Actions
