Naira Falls Softly as CBN Keeps Tab on FX Supply
The naira fell softly at the Nigeria Foreign Exchange Market (NFEM) against the US dollar on Monday as the Central Bank (CBN) FX intervention sales became the norm in the currency market.
The CBN has already pumped more than $1.3 billion to support the local currency in April, with analysts saying the authority has doubled down on its aggressive dollar intervention sales to ease pressure in the FX market.
At the close of trading, the naira slipped slightly, depreciating by 2 basis points to finish at N1,599.9452 from N1,599.54 on Friday close.
The US dollar-to-naira exchange rate moved within a range of N1,596 to N1,603.50 in the official market as the supply side maintained strength from huge FX supply by the Apex bank.
Analysts said CBN’s sustained interventions should keep the naira range-bound in coming sessions, preventing any sharp deviations from current levels. Oil prices dropped over $1 per barrel on Monday as fears about weaker demand, fueled by the ongoing U.S.-China trade war, weighed on the market.
Brent crude futures fell $1.09, or 1.63%, to $65.78 a barrel, while U.S. West Texas Intermediate (WTI) crude slipped $1.15, or 1.82%, to $61.87. Meanwhile, gold prices rebounded after earlier losses, supported by bargain hunting as investors monitored U.S.-China trade developments and awaited key economic data.
Spot gold rose 0.4% to $3,332.59 an ounce after initially falling by as much as 1.8%. U.S. gold futures climbed 1.4% to $3,344.00, reflecting renewed safe-haven demand amid persistent market uncertainties. #Naira Falls Softly as CBN Keeps Tab on FX Supply
