Naira Dips Against Crosses, Nigeria’s Foreign Reserves Top $55bn
The Nigerian naira weakened against crosses in the foreign exchange market, down 0..03% against the US dollar, 0.07% to the British pound and 0.008% against the Euro.
In its latest daily FX data release, the Central Bank of Nigeria (CBN) revealed that the local unit fell 0.03% against the dollar at the official window, closing at N1,332.10.
The spot FX rate also lost 0.07% against the pound and 0.08% against the euro, at N1,759.17/£ and N1,490.22/€, investment firm AIICO Capital Limited said in a note.
The naira-to-dollar exchange rate came under increased pressure at the Nigerian Foreign Exchange Market (NFEM), crossing the N1332 resistance level for the first time since last month.
Transactions were conducted between N1331 and N1334, signalling that FX demand eclipsed the US dollar volume available at the supply side, in the absence of CBN intervention.
Financial institutions’ activities in the interbank forex market increased sharply, with US dollar trading volume rising as deal counts surged.
NFEM interbank FX turnover edged higher by 350% to $326.116 million from $72.475 million the previous day. The number of deals at the interbank window rose from 83 to 192, according to CBN data.
Latest data from the CBN showed that Nigeria’s gross external reserves crossed the $55 billion mark, driven by additional inflows from various sources.
Foreign reserves rose to $55.054 billion, the CBN data revealed, up from $54.983 billion amid growing receipts from hydrocarbon sales. In the global commodity market, supply concerns pushed crude oil prices higher.
Brent crude rose 3.70% to US$103.91 per barrel, and US WTI rose 4.57% to US$92.31 per barrel amid supply worries from the Middle East as attacks on shipping in the Gulf and the Strait of Hormuz increased.
A hurricane also threatened US offshore output, and the US cut production. Naira Drops, FX Gap Widens as Foreign Reserves Hit $54.92bn
