Naira: CBN Official Exchange Rate Appreciates to N1539.72
The naira appreciated further to N1539.7248 per dollar at the Central Bank of Nigeria official forex platform. The local currency has continued to record gains against the dominant US dollar, supported by improved FX supply and investors’ confidence.
Sources in the investment banking industry said the local currency is receiving CBN support, and there is also inflows from foreign portfolio investors that increased their bets on the naira assets in the financial markets.
The CBN sold more than 500 million to banks in May, and there were inflows from various sources, including dollars brought in by offshore investors that participated in the open market operations.
The naira exchange rate has seen successive gains against the dollar for 9 days straight, reflecting the absence of a US dollar shortfall in the official FX window of the CBN.
The Nigerian forex market recorded an inflow of US$780 million last week compared to US$1.04 billion in the previous week. This had lower effects on the exchange rate, as corporate demand had already eased amidst CBN active FX intervention.
According to Coronation Research, exporters accounted for 18.83%, CBN accounted for 19.78% of the total inflow, foreign portfolio investors accounted for 32.47%, non-bank corporates accounted for 27.60%, and other sources accounted for 1.32%
Meanwhile, in the parallel market, the naira was quoted at ₦1,580 per dollar as the CBN moved to halt dollar sales to Bureau de Change operators at an official rate.
The gap between the official and parallel market rates settled at about N51. Forex market analysts said they are expecting FX spread to widen if the CBN stops selling dollars to Bureau de Change. #Naira: CBN Official Exchange Rate Appreciates to N1539.72 NLNG Says $10 Billion Train 7 Project Nears Completion
