Naira Gains in Official Window, Electronic Platform, Black Market
The naira strengthened against the US dollar across forex markets due to improved foreign currency liquidity at the Nigerian autonomous foreign exchange market.
Also, the exchange rate improved versus the US dollar on the electronic FX trading platform as well as in the informal currency market. According to spot data from the FMDQ platform, the naira appreciated by 0.84%, closing at N1,532 per US dollar in the official market.
Currency trading activities on the Nigerian autonomous forex market were helped by improved U.S. dollar liquidity. Transactions were consummated between the range of N1,515 and N1,550.00, AIICO Capital Limited said.
FX traders also reported that the naira appreciated by 0.1% to N1,547.46 per greenback in the Electronic Foreign Exchange Matching System (EFEMS) on Thursday.
Exchange rates also improved by N65 on the day in the parallel market, as operators sold U.S. dollars to invisible FX users at N1,635 per US dollar.
The Central Bank of Nigeria (CBN) intervened in the forex market midweek, where it sold US dollars to authorised dealer banks. The Apex Bank sold $28.5 million to defend the naira at the auction rate of N1,500 and N1,549 per greenback.
Nigeria’s gross external reserves climbed to $40.424 billion due to sustained inflows from various sources, including remittances and other foreign inflows.
Elsewhere, oil prices declined as projections for sufficient supply in the oil market countered the optimism brought on by increasing hopes of a U.S. interest rate reduction. Brent crude was about $72.65 per barrel, while WTI was approximately $69.30.
Likewise, gold fell by over 1% as investors took profits after it had briefly reached a five-week high earlier in the day and adjusted positions ahead of a Federal Reserve meeting scheduled for next week. Gold traded around $2,680.60 per ounce. Litigation Claims against Access Holdings Plc Hit N11.3Trn
