Naira Losses Deepen, Exchange Rate Weakens to N1,367/$US
Naira losses against the US dollar deepened at the Nigerian Foreign Exchange Market (NFEM), the official window for the Central Bank’s daily FX rate.
The naira depreciated to N1367.6057 per dollar at the NFEM window on Monday, up from N1361.8394 quoted at Friday’s close, daily FX data released by the Apex Bank revealed.
Transactions were consummated between N1359 and N1380 per US dollar during the day at the Nigerian forex market, signalling improved liquidity and reversing last week’s intraday high of N1395.
The local unit faced significant pressure from rising international payments and low inflows from foreign portfolio investors as they adjusted their equity and investment in fixed-interest securities.
Activities in the Interbank FX segment slowed sharply, with turnover and the number of deals executed by eligible market makers on behalf of their non-bank corporate customers declining.
According to the Central Bank, interbank FX turnover printed at $614.245 million, down from $1.010 billion posted on Friday across 315 deals, while 201 deals were executed today.
Nigeria’s foreign reserves continued their uptrend, edging up to about $55.2 billion, supported by elevated global crude oil prices. The Middle East conflict continues to boost Nigeria’s fiscal performance, with oil receipts surging sharply on higher oil prices.
Brent crude fell to $114.40 per barrel on Monday, retreating from multi-month highs despite escalating Middle East tensions and the risk of renewed strikes on Iran.
Prices eased as regional crude exports recovered near pre-war levels, although intensifying Saudi-Houthi clashes and potential Iranian retaliation continue to pose supply disruption risks.
Gold hovered around $4 010.84 per ounce, close to three-month lows, as Middle East tensions and higher energy prices fuelled inflation and interest-rate concerns.
Investors also awaited key central bank decisions, with the Fed expected to hold rates this week, while prospects of a December hike continued to pressure non-yielding gold.
Last week, the local unit closed weaker at the official window and flat in the parallel market. At NAFEM, the Naira lost ₦29.58 (222bps) for the week, closing at ₦1,361.84/$.
The pound rose 3.19% to ₦1,821.46, and the euro rose 2.28% to ₦1,525.12. In the parallel market, the dollar was flat at ₦1,370.00, the pound fell 0.55% to ₦1,800.00, and the euro fell 0.33% to ₦1,500.00. U.S. Dollar Index Slips Ahead of Key Economic Data
