Naira Drops to N1,448 after FX Boosts
The naira fell against the US dollar at the official window due to FX shortage amidst growing demand for foreign payments. The local currency depreciated after $186.60 million was sold to banks last week to boost the supply side.
Daily FX data released by the Central Bank of Nigeria (CBN) showed that the naira lost about N2 per dollar, closing at N1448.4355 from N1446.7421 the previous close.
FX spot rate touched an intraday high of N1452 per dollar on Monday, according to the updated FX report, reflecting there was pressure in the official window.
Trading data showed spot rate hit an intraday low of N1445, the same rate quoted last week, signalling the CBN intervention impacted the exchange rate at the official window.
U.S dollar inflows through the Nigerian forex market (NFEM) increased by more than 64% as the Apex Bank stepped up intervention at the official window.
The naira faced pressures, but the Apex Bank’s quick and successive FX sales bolstered liquidity conditions in the currency market last week.
Foreign exchange inflows through the Nigerian Foreign Exchange Market (NFEM) increased significantly to US$841.10 million, Coronation Merchant Bank’s research subsidiary said in a note.
The total amount translates to 64.21% week on week surge compared with US$512.20 million in the previous week, merchant lender said in the note.
By breakdown, the CBN accounted for the largest share of inflows at 33.42%, or US$281.10 million. This was followed by Nonbank Corporates (23.07%), Foreign Portfolio Investors (19.38%), and Individuals (5.45%), while other sources contributed 2.01%. Ikeja Hotel Hits Highest Valuation in 52-Week, Gains 45%
