Naira Drifts Against U.S. Dollar on FX Liquidity Shortfall
The naira drifted against the US dollar at the official window on Friday, reflecting a momentary shift in foreign currency liquidity amid a surge in demand.
The local currency closed at N1361.3950 per dollar at the official window, the Central Bank said in its official daily FX data released, from N1355.8502 the previous day.
The official rate hovered between an intraday high of N1366.5000 per dollar and a low of N1355, with a total of $78.15 million in interbank turnover across 91 deals.
The previous day, the market recorded $145.842 million in interbank turnover across 118 deals. This suggests liquidity fluctuated sharply as the market headed for a close amidst surging corporate demand for international payments.
The Central Bank continues to support the local currency, but the authority has become less aggressive, with a $150 million FX injection in April, 83% below the record support in March.
Oil prices rose on Friday after the US and Iran exchanged fire in the key Strait of Hormuz waterway.
The US said it made self-defence strikes in response to “unprovoked” Iranian attacks as US ships were heading out of the Gulf through the Strait, which is south of Iran.
Iran said the US had violated the April ceasefire, according to its state media. The global Brent oil benchmark price rose almost 3% to nearly $103 a barrel at one point before falling back to around $100.
Despite the attacks, US President Donald Trump said on Friday the US-Iran ceasefire is still in place. Iranian state media has reported that the situation “is back to normal now”.
More than a fifth of the world’s oil and gas usually passes through the Strait of Hormuz, which has been effectively blocked since the start of the US-Israel war with Iran. CBN Tightens the Valve: Why Dividend Payments Now Require Regulatory Clearance
