Naira Appreciates as Foreign Currency Demand Pressures Ease
The naira reclaimed value in the foreign exchange (FX) market as demand for the US dollar eased. The local currency strengthened after the Central Bank of Nigeria bolstered liquidity with more than $300 million in FX sales to banks.
Latest update from authorised dealers revealed that Apex Bank intervened yet again in the forex market on Friday, selling $28.7 million between the rate of N1,545.00/$1 – N1,555.00/$1, bringing the total FX sales for the week to $329.6 million.
In the official market, the exchange rate appreciated slightly by 8 basis points against the US dollar, closing at N1, 547.58 per greenback. The Nigerian foreign exchange market experienced stable liquidity, although demand has continued to push prices higher.
Forex traders said transactions were conducted within a range of N1,545 and N1,551.50. Ultimately, the NFEM closed at N1,547.9989, reflecting an 8-bps depreciation from the previous trading day.
In contrast, the naira traded steady at N1,660 per US dollar in the parallel market amidst stable demand. Oil prices dropped after U.S. President Donald Trump was inaugurated for a second term.
He announced that he would immediately declare a national energy emergency, vowing to fill up the strategic reserves and promote American energy exports worldwide.
Brent crude was priced at $80.15 per barrel, while West Texas Intermediate (WTI) was approximately $76.48. In contrast, gold prices recovered from earlier losses as investors sought insights into the new administration’s policies.
Analysts said this could provide further clues about the Federal Reserve’s interest rate direction. Gold traded around $2,697.60 per ounce. #Naira Appreciates as Foreign Currency Demand Pressures Ease Navy Intercepts Boat Laden with 100,000 litres of Stolen Crude Oil in Ondo
