Naira Mixed as Gross External Reserves Reach $40.962bn
The naira traded on a mixed note across the foreign exchange markets as Central Bank of Nigeria (CBN) updated data showed that the gross balance in the nation’s external reserves climbed to $40.962 billion on Monday.
The local currency exchange rate worsened at the Nigerian Foreign Exchange Market (NFEM), while a channel check revealed that the spot rate at the parallel market appreciated slightly on Tuesday.
FX traders said they observed intermittent fluctuation at the official window due to unanticipated demand and supply movements. The spot FX rate fell to N1534.9346 per dollar at the CBN FX data platform, from N1533.6715 closing rate reported the previous day.
The naira touched an intraday high of N1535.5000 on Tuesday, reflecting the exchange rate stability over the previous intraday high.
In the parallel market, the naira spot rate appreciated to N1545 per greenback. Bureau de change operators and banks are competing to sell dollars to FX users at the informal level as new regulation allows individuals to spend dollars via naira debit cards.
Hence, the gap between official and parallel market exchange rates has narrowed to N11. In the global commodity market, prices of crude oil dropped on Tuesday as hopes for progress in talks over Russia’s war in Ukraine raised expectations that sanctions on Russian crude could ease, potentially boosting global supply.
Brent crude settled at $65.79 per barrel, down 81 cents, while U.S. West Texas Intermediate, due to expire Wednesday, fell $1.07 to $62.35. Gold prices also slipped as the dollar strengthened, and investors awaited Federal Reserve Chair Jerome Powell’s upcoming Jackson Hole speech.
Spot gold declined 0.4% to $3,317.71 per ounce, hitting its lowest point since August 1 earlier in the session. Oil prices are likely to remain range-bound in the near term. # Naira Mixed as Gross External Reserves Reach $40.962bn Airtel Africa: Analysts Raise Target Price, See 70% Upside
