Naira Extends Volatility as NFEM Rate Falls to N1,456
The naira has dropped in value for eight consecutive trading sessions at the Nigerian foreign exchange (NFEM) window, closing at N1456 per dollar on Thursday.
The local currency defied the Central Bank of Nigeria (CBN) fx interventions amidst rising foreign payments, reflecting the absence of significant inflows from foreign investors, exporters and non-bank corporate players.
The Apex Bank’ daily FX update revealed that the naira depreciated again by 0.05% to ₦1,456.07 per dollar transaction conducted in the official window. During intraday trading session, the spot FX rate touched N1459 per dollar before closing at N1455.25.
The dollar was priced at an intraday low of 1453.55 per dollar. In the parallel market, the naira fell sharply against the dollar, settling at N1490 at the informal segment.
The naira has been volatile for all but one day in December as FX shortage lingers. The naira was quoted at N1,445.3929 on December 2nd and has since continued its downward trend.
The worsening exchange rates was driven by elevated dollar demand amid ongoing year-end activities, reflecting diminished currency sentiment and heightened pressure across both the regulated official segment and the informal foreign exchange market.
In the global forex market, the naira was sold off in reaction to the U.S. Federal Reserve’s 25 basis point rate cut on Wednesday. The US dollar weakened against the pound, euro and other major currencies after the Fed made a hawkish cut, as expected.
The outcome of the Federal Reserve meeting injected some volatility into the Dollar Index – it pushed through the lower end of the four-day range of roughly 98.75-99.30. #Naira Extends Volatility as NFEM Rate Depreciates to N1,456 Naira Depreciates over Rising Foreign Payments
