Naira Gains as Nigeria Records Additional FX Inflow
The Nigerian local currency, the naira, experienced a slight gain against the US dollar in the official FX market on Tuesday as Nigeria recorded additional foreign currency inflows into external reserves.
According to information obtained from the FMDQ platform where daily official exchange rate is quoted showed that the naira appreciated by 0.04% to close at ₦1,576.66 per US dollar.
The local currency strengthen was boosted as FX pressure in at the Nigerian autonomous foreign exchange market eased today, investment analysts told MarketForces Africa.
The impacts of US dollar intervention sales to authorised dealers by the apex bank contributed to the FX liquidity amount in the currency market, aiding the naira recovery at the official window. >> FX Stability: CBN Sells 122.671m Dollars to 46 Authorised Dealers
Nigeria recorded additional inflows of more than $321 million on Monday into the external reserves, lifting the balance to $35.696 billion.
The surge followed improved crude oil production and relatively high market price in the global commodity market. Today, oil prices declined as a result of worries of a slowing Chinese economy.
The data tempered demand outlook in the oil market despite the growing consensus that the U.S. Federal Reserve could begin cutting its key interest rate in September.
Brent prices decreased by 1.39% to $83.27, while WTI prices decreased by 1.55% to $80.64. Additionally, gold prices gained 1.68% to $2,469.50 per ounce at the time of this report.
In the parallel market, the naira closed at ₦1,550 per dollar, losing N5 day on day following a sustained increase in foreign currency for invisible transactions. #Naira Gains as Nigeria Records Additional FX Inflow CBN Defends Naira with $39m in Forex Market
