Naira Exchange Rate Improves as Nigeria’s FX Reserves Climb
The Nigerian naira exchange rate improved at the official window as additional inflows totalling $62 million in November boosted the nation’s external reserves.
Gross external reserves expanded to $43.259 billion, recording first accretion in November from $43.197 billion at the end of October, Central Bank updated data revealed.
With surplus US dollar liquidity in the currency market, the naira rebounded on Tuesday after spot rate depreciated significantly at the beginning of the week.
The spot FX rate 19 basis points to close at ₦1,433.66/$, having traded within a range of ₦1,442.45/$ and ₦1,430.00/$ during the session.
FX analysts said a positive outlook on the nation’s hydrocarbon revenue and sustained foreign portfolio investors’ confidence will keep the naira strong throughout the remaining part of the year.
In the global commodity market, oil prices fell more than 1% on Tuesday as the OPEC+ decision to pause output hikes in the first quarter of next year, along with weak manufacturing data and a stronger dollar, weighed on the market.
Brent crude shed 55 cents, or 0.85%, to $64.34 per barrel, while U.S. West Texas Intermediate (WTI) fell 71 cents, or 1.16%, to $60.34.
Similarly, gold prices fell more around 1%as the dollar hit three-month highs, while traders awaited U.S. economic data for clues on the Federal Reserve’s monetary policy path.
Spot gold dipped 1.48% to $3,934.23/oz, while U.S. gold futures shed 0.78% to $3,947.92/oz.
Analysts expect cautious trading across global markets as investors digest OPEC’s output plans, monitor oil price stability, and assess gold’s reaction to a resilient U.S. dollar and evolving Fed rate-cut expectations.. Nigeria Cannot Decarbonise to Poverty — Minister
