Naira Appreciates to N1,356 as Foreign Reserves Reach 2009 High
The naira rose against the US dollar in the Central Bank of Nigeria (CBN) foreign exchange market as gross external reserves reached its highest level since 2009.
The local currency closed at N1,356.2704 per dollar at the Nigerian Foreign Exchange Market (NFEM), up from N1,363.8250 per dollar last week, according to the CBN daily FX update.
International transactions were consummated at the official window between N1354.5000 and N1360 per dollar, reflecting absence of significant FX payment pressures in the currency market.
Nigeria’s gross external reserves surged to $50.505 billion, the highest international dollar balance since January 2009 when. The FX reserves position was buoyed by inflows from oil sales.
In the parallel market, the naira rallied against the greenback to N1390 per dollar as Bureau de Change supply outpaced demand.
The exchange rates improved across the market, reflecting broad-based buying interest in the local currency across both the official and informal foreign exchange segments.
Elsewhere, oil prices sank Monday, hitting their lowest levels in more than three months, after the United States and Iran said they had reached an agreement that would end a US blockade of Iranian ports and reopen the vital Strait of Hormuz.
Brent crude, the global oil benchmark, fell 5% to $82.91 a barrel, its lowest level since March 5, the first week of US-Israeli airstrikes against Iran. US crude dropped 5.5% to $80.21, also its lowest since early March.
Both have fallen by about $10 per barrel over the past week. However, crude prices remain around $10 a barrel higher than they were before the United States and Israel launched attacks Naira Depreciates as Interbank FX Turnover Declines
