Naira Hovers Around N1,380 as Interbank FX Turnover Surges
The naira hovered around NGN1,380 per dollar at the Nigerian Foreign Exchange Market (NFEM) amidst a 56% surge in interbank FX turnover.
The local unit was relatively stable within the official window, closing at N1,380.1079 per dollar for international transactions on Thursday, up from N1,380.0775 the previous day.
Intraday official FX spot rate movements suggest that pressure on the naira persisted but eased at the long end, with intraday lows worsened.
The Central Bank of Nigeria (CBN) daily FX report showed that the naira traded between N1376 and N1390.5000 on Thursday. The previous day, intraday high and low were between N1368 and N1392.
Based on CBN daily FX update, interbank FX turnover at the NFEM window surged by about 56% to close at $195.371 million from $125.588 million reported on Wednesday.
The exchange rate steadied at N1,388 in the parallel market, reflecting subdued trading activity in the official segment even as the informal market remained largely unmoved.
Oil prices have extended their decline to levels last seen before the start of the Iran war, as expectations of rising supply from the Middle East outweighed demand concerns.
Brent crude futures for August delivery fell BY 1.5% to $72.68 a barrel while US West Texas Intermediate (WTI) lost 76 cents to $69.58 a barrel.
Both contracts hit their lowest since February 27. August Brent was trading lower than September, which was priced at $73.59, signalling ample short-term supply. FX Spot, Derivatives Markets Turnover Rises 7.7% to $2.32bn
