Naira Exchange Rates Gap in FX Markets Slides to N10
The Nigerian naira continued to appreciate in the official foreign exchange market following flood of US dollar sold to the authorised dealer banks last week.
According to data obtained from the FMDQ, the naira appreciated by 0.20% in the official market, closing at ₦1,570.99 per US dollar.
The Naira appreciated against the US dollar by 2.65% week-on-week, reaching N1,574.20 after the CBN sold $876.26 million at the retail Dutch Auction (rDAS) at an exchange rate of ₦1,495 per dollar to 26 dealer banks.
Analysts said sustained gain in the currency market supported by the Central Bank’s FX auction aim at boosting FX liquidity in the foreign exchange market.
Channel check confirmed that the naira appreciated by 0.63%, ending at ₦1,580 per US dollar in the parallel market. Demand pressure in the informal currency eased as FX user got enough from their respective banks after retail Dutch auction sales last week.
The exchange rate gap between official and parallel market has narrowed to N10 with the hope that Bureau de Change operators spot FX rate would converge in no time.
Elsewhere, the nation’s foreign exchange balance declined further to $36.83 billion, according to data from the Central Bank of Nigeria. After successive FX receipts, Nigeria’s gross external reserves had reached 36.872 billion before it retreated.
Analysts attribute the decline to latest FX outflow to boost the US dollar liquidity in the currency market. In the global commodity market, Brent crude increased by 1.00% to $80.46 per barrel, and West Texas Intermediate (WTI) crude rose by 1.43% to $77.94 per barrel.
U.S benchmark WTI crude oil futures marked their fifth consecutive gain, driven by supply disruption concerns amid rising tensions in the Middle East. #Naira Exchange Rates Gap in FX Markets Slides to N10
