Naira Climbs to N1,379 as Interbank FX Deals, Turnover Surge
The naira rose against the US dollar at the Nigeria Foreign Exchange Market (NFEM) amidst a significant surge in interbank turnover, according to daily FX data published by the Central Bank.
Dollar liquidity improved above international payment levels after consecutive market pressures that pushed the local currency lower at the official window.
Daily FX data released by the Central Bank showed that the naira appreciated marginally by 0.09% to close at ₦1,379.46/$ at the official window, from ₦ 1,380.7066 per dollar on Tuesday.
Trading data from the official trading platform showed the spot rate reached an intraday high of N1386 and briefly touched an intraday low of N1365 per dollar due to FX injection.
NFEM interbank turnover increased sharply on Wednesday, with data released by the Apex Bank showing $249.905 million in transactions among institutions across 180 deals.
This indicates improved market liquidity and greater market confidence, leading to tighter bid-ask spreads across all foreign exchange deals.
In the parallel market, the naira was quoted at N1395 per dollar, according to channel check, suggesting a stable naira exchange rate on the day.
Oil prices have soared following reports that the US is preparing for an ‘extended’ blockade of Iran. Brent crude briefly hit $119 a barrel on Wednesday evening, the highest price so far this month and a rise of nearly 7% in one day.
Wall Street Journal reported that US President Donald Trump has instructed aides to prepare to extend the ongoing blockade of Iran’s ports, in an effort to squeeze the country’s economy.
Iran has said it will continue to disrupt traffic travelling through the Strait of Hormuz in response to the US blockade. The price of oil has seen sharp swings since the start of the war, as the key Strait of Hormuz has been effectively closed for weeks due to the conflict. Senate Approves $516.3m Loan for Sokoto–Badagry Project
