Naira Gains 1.4% as FX Transactions Settle at $81.12m

Naira Gains 1.4% as FX Transactions Settle at $81.12m

The naira appreciated against the US dollar to N745.19 at the Investors and Exporters window on Tuesday as demand pressures eased. Compared with the previous rate, the local currency gained by 1.38 per cent from N755.27 it exchanged for the dollar before the Islamic holiday.

Market data showed that the open indicative rate closed at N767.24 to the US dollar on Tuesday. A spot exchange rate of N819.90 to the greenback was the highest rate recorded within the day’s trading before it settled at N745.19.

The naira sold for as low as N700 to the US dollar within the day’s trading. A total of 81.12 million dollars was traded at the investors and exporters window on Tuesday. The outlook for the naira is bleak without higher FX receipt from hydrocarbon sales, research analysts at LSintelligence Associates said.

Despite higher oil prices, Nigeria’s external reserves hover around $33.2 billion as the state oil company seeks to swap oil for loans to boost the naira. In Nigeria, oil production has continued to record fluctuations largely due to challenges of oil theft and pipeline vandalism in oil-producing areas.

According to data from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, crude oil production improved to 1.41 million barrels per day (mbpd) in August 2023 compared with 1.30 mbpd recorded in July ’23.

Nigeria recorded a boost to revenue by about N188 billion on the back of crude oil sales in August. However, it is worth noting that oil production remains below the OPEC+ approved quota of 1.7 mbpd and the FGNs benchmark of 1.65 mbpd.

Despite the shortfalls prevalent in Nigeria’s oil sector, the commodity accounted for about 79% of total exports in Q2 2023 according to the latest foreign trade statistics data from the NBS. #Naira Gains 1.4% as FX Transactions Settle at $81.12m

Naira Devaluation Deepens Economic Crisis in Nigeria