Naira Depreciates Against Dollar Amidst Fresh FX Sales
The naira slumped against the US dollar in the foreign exchange market despite sustained FX intervention sales by the Central Bank of Nigeria (CBN). Latest spot data showed that the local currency lost N5.23 to close at N1,537.62 per US dollar in the official market as total intervention for the month crossed $1 billion.
In March, the CBN stepped up US dollar sales to authorised dealer banks to stem negative tide against the naira, having noted sustained increase in foreign currency demand. The monetary authority has keep FX intervention flowing, selling $29.70 million in latest round, according to TrustBanc Financial Group Limited.
In the forex market on Wednesday, the USD/NGN pair fluctuated between N1,528.00 and N1,541.00 before settling at N1,537.62.
Meanwhile, accretion into external reserve remained tight as oil prices and volume production fluctuate. “If reserves continue to dwindle on the back of USD supply into NAFEM, this will inevitably reach a breaking point – all else being equal”, Verto said in a macro update on Nigeria.
Latest data from the CBN revealed that Nigeria recorded inflows into external reserves as gross balance increased to $38.315 billion this week from $38.303 billion. However, oil prices climbed on Wednesday, supported by a drop in U.S. crude and fuel inventories and concerns over tighter global supply following U.S. tariff threats on nations purchasing Venezuelan oil.
Brent crude rose 82 cents, or 1.12%, to $73.84 per barrel, the highest since February 27. WTI crude gained 82 cents, or 1.19%, to $69.82.
Meanwhile, gold prices dipped as the dollar and U.S. bond yields strengthened, though uncertainty over new tariffs from the Trump administration kept prices above $3,000. Spot gold fell 0.1% to $3,015.50 an ounce, while U.S. gold futures dropped 0.1% to $3,022.10. #Naira Depreciates Against Dollar Amidst Fresh FX Sales Foreign Investors Bet on Nigerian Tops Stocks
