Naira Falls at Official, Parallel Markets on Higher FX Demand
The naira fell from the rally tarmac at the Central Bank of Nigeria (CBN) official exchange rate platform on increased demand for US dollars amidst tight supply. The local currency also lost weight against the greenback at the parallel market, widening the FX spread.
According to FX update from the authority, the spot rate at the Nigeria Foreign Exchange Market (NFEM) depreciated to N1533.10 from N1531.95 at the previous close in the absence of fresh dollar injection.
The forex market has remained sufficiently liquid with inflows across sources, including foreign portfolio investors and exporters. Analysts observed a moderate rise in FX demand on Tuesday from companies seeking foreign payments.
The Naira USD/NGN pair traded within a range of $/N1,532.0 to $/N1,534 at the official window amidst bullish predictions of a strong year-end close. At the end of the trading session on Tuesday, the naira depreciated slightly by 7 basis points to settle at $/N1,533.10 with the expectation that the spot rate will maintain its current trading range in the near term.
At the parallel market, the local currency fell to N1550 from N1510 due to increased pressure from holiday-bound FX users. Elsewhere, oil prices edged lower as rising OPEC+ supply and worries of weaker global demand countered concern about U.S. President Trump’s threats to India over its Russian oil purchases.
Brent crude and U.S. West Texas Intermediate slipped 1.17 cents each to settle at $67.59 and $65.12 per barrel, respectively.
Gold prices climbed to a near two-week high, supported by growing expectations of U.S. interest rate cuts, while investors awaited President Donald Trump’s decision on Federal Reserve appointments. Spot gold gained 0.2% to $3,380.08 per ounce; futures settled at $3,433.77. #Naira Falls at Official, Parallel Markets on Higher FX Demand Nigerian Exchange Surpassed N91trn as BUA, Dangote Rally
