Naira Mixed as Banks Receive US Dollars from CBN
The naira moved in different directions on Thursday in the foreign exchange (FX) markets as the Central Bank of Nigeria (CBN) began to clear the foreign currency backlog it owed with US dollar payments to local banks.
MarketForces Africa reported that about 14 banks have received payment from an estimated sum of $7 billion owed by the apex bank over the years. In an effort to stabilise the exchange rate, the apex bank said it has started paying back forex backlog.
Despite the positive impacts of the move, the exchange rate worsened at the Nigerian Autonomous Foreign Exchange Market (NAFEM) due to increased demand for the US dollar logged by importers and manufacturers.
Data from the FMDQ platform indicated that the naira depreciated by 0.9% to N793.28 during an intraday trading session. The exchange rate had closed at N786.02 per dollar midweek after solid forex market rebounds.
In the parallel market, the Naira’s performance remained positive as forex demand slowed down amidst speculative activities. The exchange rate closed at N1,150 per US dollar, compared to N1,175 previously.
Elsewhere, the oil market continues to face pressures from ongoing conflict in the Middle East, strong inventories in the US and general uncertainties in the global economy.
The oil prices were hanging above $80 per barrel on Thursday, according to analysts update. Brent crude traded at $85.90 per barrel, while West Texas Intermediate (WTI) crude oil was around $81.71 per barrel.
Analysts said these levels were reminiscent of prices last seen before the Hamas attack on Israel and were influenced by traders’ reactions to the Federal Reserve’s announcement of not raising interest rates. #Naira Mixed as Banks Receive US Dollars from CBN
