Naira Appreciates to N1,329 as External Reserves Reach $53.806bn
With the country’s $53.806 billion in foreign reserves at the end of August, the Nigerian naira appreciated to N1,329 per US dollar at the official window, extending its rally in September amid improved FX liquidity.
A daily FX update released by the Central Bank of Nigeria (CBN) showed the official rate rising to N1329.,4300 on Tuesday, from N1332.9396 quoted the previous day.
Transactions during the day were executed between N1327 and N1335.5000 per dollar, indicating the market also ran dry of FX liquidity, given the previous day’s low of N1320.
The naira is expected to maintain its current appreciation, given strong forex market liquidity and the absence of significant demand for international payments.
Activities of financial institutions acting as market makers increased on Tuesday, and so did the volume of US dollar transactions closed at the Nigerian foreign exchange market (NFEM).
Data released by the authority showed that NFEM interbank FX turnover climbed by about 31% on the day to $130.454 million, from $105.643 million on Monday.
The number of FX trading activities among financial institutions at the interbank window increased to 139 from 118 the previous day.
With $53.806 billion in gross external reserves, Broadstreet analysts maintain a positive outlook for the local currency, which has already exceeded the market-set year-end target of N1350 for 2026. Moody’s Changes Nigeria’s Credit Rating Outlook to Positive
Oil prices extended gains Tuesday as tensions in the Middle East escalated, with the U.S. carrying out new strikes against Iran.
Brent crude futures, the international benchmark, were up 4.5% to $94.52 a barrel. U.S. West Texas Intermediate futures added about 5% to $90.03 per barrel, hitting levels not seen since July 24.
U.S. Central Command confirmed earlier reports on Tuesday that the U.S. “forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran.
The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region.”
A tanker was struck by three unknown projectiles while transiting Hormuz on Monday, according to an incident report from the U.K. Maritime Trade Operations Centre.
The tanker was sailing in the southern shipping lane close to the Omani coast, the UKMTO said, adding that no casualties were reported.
Iran launched an attack on two American bases in Jordan on Monday in retaliation for the U.S. strike on its Larak Island.
American forces targeted two Iranian rocket launchers on Larak Island on Sunday, reportedly killing three, saying that Tehran intended to launch rockets carrying sea mines into the Hormuz Strait.
The small island, located in the strait, has been a critical military and shipping control point for Iranian forces, helping them maintain a firm grip on vessel traffic along one of the world’s most important maritime routes.
