Naira Closes at N1,353 Per US Dollar in Nigerian Forex Market
The naira closed at N1,353.9741 per US dollar in Nigeria’s foreign exchange market on Friday, appreciating from the previous quote of N1,355.8855 as international payment pressures eased.
The local unit rose as forex market activity eased, according to updated data released by the Apex Bank, with the official rate reaching an intraday peak of N1,359 per dollar.
The exchange rate movement on Friday suggests that a significant improvement in FX liquidity halted the local unit’s free fall during the week’s last trading session.
Transactions at the Nigerian foreign exchange market (NFEM) were completed between N1350.15000 and N1359 per greenback, compared with intraday spot rates of N1348 and N1363.75000 on Thursday.
At the interbank FX window, financial institutions’ trading activity fell sharply, with both turnover and deal counts moderating from the week’s peak.
The Central Bank report revealed that interbank FX turnover dropped to $466.965 million, about 28% lower than the $644.845 million recorded at the window on Thursday. The number of deals executed in the interbank FX market fell to 146 from 242 the previous day.
Nigeria continues to record an outflow of foreign currencies as the nation’s gross external reserves print low this week. FX analysts said offshore investors have been dumping naira assets, driving up demand for the US dollar.
Data from the Central Bank showed Nigeria’s foreign reserves fell to $54.873 billion at the close of trading on Thursday, amid elevated oil prices in the global commodity market.
However, FX inflows into the economy have reduced, but outflows have been persistent in recent weeks. Apex Bank is also leveraging its strong external buffer to defend the naira position in the currency market. US, European Indexes Edge Higher on AI Stocks Momentum
