Naira Rallies as FX Inflow Grows by 8.2% to $1.19 Billion
The naira rallied across foreign exchange (FX) markets as data revealed that US dollar inflows improved by about 8.2% week on week to $1.19 billion. The spot FX rate faced pressures in the recent past weeks due to a foreign currency shortfall at the official FX window despite sustained intervention by the monetary authority.
The Central Bank of Nigeria (CBN) intervened in the forex market eight consecutive trading sessions to keep the supply side strong as thin FX dollars stoked pressure on the naira. According to spot FX data obtained from the FMDQ FX window, the naira appreciated by 0.20% to N1,533.10 per US dollar on Monday.
The Nigerian foreign exchange market remained relatively stable today, bolstered by improved dollar supply, AIICO Capital Limited told investors in a note on Monday. The firm said the CBN sold $41.6 million at rates between N1,527.50 and N1,531. The US dollar to Naira pair traded within a range of N1,527.50 to N1,537.00 on the day.
Last week, the official window recorded an inflow of US$1.19 billion, up by 18.2% week on week to US$1.10 billion on Friday, Coronation Limited said in its analysts note. The breakdown showed that the CBN accounted for 39.85% of the total inflow, and foreign portfolio investors (FPIs) supplied 18.09% of the aggregate sum.
Other contributors include non-bank corporates (23.81%) and exporters (15.67%), while other sources accounted for (2.58%). In the parallel market, the naira appreciated by 1.27% to N1,570. Hence, the gap between official and parallel market rates settled at N37 per US dollar.
In the global commodity market, oil prices rose 1% on Monday after U.S. President Donald Trump announced a 25% tariff on countries purchasing oil and gas from Venezuela, alongside fresh U.S. sanctions on Iranian exports.
However, gains were limited by reports that OPEC+ plans to proceed with its May production increase and ongoing talks to end the Ukraine war, which could boost Russian crude supply.
Brent crude climbed 70 cents, or 1%, to $72.86 per barrel, while WTI gained 73 cents, or 1.05%, to $69. Meanwhile, gold prices declined as a stronger dollar, and Trump’s cautious trade stance pressured the market. Spot gold fell 0.4% to $3,010.33 an ounce. #Naira Rallies as FX Inflow Grows by 8.2% to $1.19 Billion Transcorp Hotels Hits Record High Ahead of Dividend Payment
