Naira Mixed as Nigeria’s Foreign Reserves Cross $39 billion
The naira traded on a mixed note across the foreign exchange (FX) markets amidst sustained increase in Nigeria’s foreign reserves. In the official window, the value of the Nigerian naira depreciated further to N1654 per US dollar due to absence of sufficient FX liquidity.
However, the exchange rate appreciated in the informal currency market by N20 as demand pressure eased. The market anticipates that the Apex Bank will sell US dollars to banks before the end of the week to reduce exchange rate volatility driven by liquidity shortages.
FX spot data from the FMDQ platform showed that the naira exchange rate depreciated by 0.06%, closing at ₦1,654.09 per US dollar.
In the parallel market, the naira closed at ₦1,730 per US dollar from N1,750 on Tuesday as currency traders anticipate that the FX auction will reduce the US dollar shortage on the supply side.
Data obtained from the Central Bank of Nigeria (CBN) showed that gross balance in the external reserves increased above $39 billion benchmark. The surge has been supported by sustained FX inflows at the time when the Apex Bank slowed down on FX intervention in the market.
Nigeria now has $39.23 billion as the gross balance in the foreign reserves as of October 22, 2024, the latest data obtained from the Central Bank revealed. Oil prices declined today after industry reports indicated that U.S. crude stockpiles increased more than anticipated. However, futures are still up by about 2% for the week as traders consider the ongoing conflict in the Middle East.
Brent crude is now priced at $74.84, while WTI has fallen to $70.63. Similarly, gold prices dropped over 1% after reaching a record high.
This decline was driven by a stronger dollar and rising U.S. Treasury yields, which overshadowed safe-haven demand linked to the upcoming U.S. election on November 5 and the situation in the Middle East. Gold is trading at around $2,727.20 per ounce. #Naira Mixed as Nigeria’s Foreign Reserves Cross $39 billion OANDO, UNILEVER Nigeria Drive NGX Higher by N31bn
