Naira Priced at N1,454 Per Dollar Payment in FX Market
The naira was priced at N1454.51 per U.S. dollar payment transaction at the Nigerian foreign exchange market on Friday after trading negatively for 8 days.
The local currency’s last-minute rally was driven by the Central Bank of Nigeria (CBN) fx intervention sales to banks and other authorised dealers in the official window.
FX traders said it took the Apex Bank for the naira to rebound on Friday amidst rising demand for foreign payments by eligible market participants.
The FX spot rate trade was between an intraday high of N1458.5000 and a low of N1453 per dollar at the CBN window as the supply side was strengthened by the latest FX supply.
In the parallel market, the local currency was settled between willing market participants at an agreed rate of N1475, reflecting improved currency sentiment and reduced pressure across both the regulated official segment and the informal foreign exchange market.
Still, demand pressures outweighed the robust supply from the CBN and inflow from offshore players looking to participate at the OMO bills auction.
Elsewhere, gross FX reserves increased for the twenty fifth consecutive week, growing by a strong USD396.84 million week on week to USD45.44 billion.
In the forwards market, the naira rates depreciated across contract, Cordros Capital Limited said in a note on Friday. Analysts reported that forward FX contract for 1-month dropped by -0.4% to N1,485.97/USD, 3-month weakened by -0.5% to N1,536.28/USD and 6-month fell by -0.9% to N1,599.70/USD.
Meanwhile, the forward FX contract for one year appreciated by 0.3% to N1,726.89, according to Cordros Capital Limited. The market still expects the naira to remain broadly stable over the near to medium term, driven by strong net FX liquidity. MTN Nigeria Hits 52-Week High as Investors Double Down Bets
