Naira Reclaims Value as External Reserves Climb to $38.5bn
The naira reclaimed value against the US dollar at the Nigerian Foreign Exchange Market (NFEM) as external reserves increased further, settling at about $38.5 billion on successive inflows from across sources.
While the supply side strengthened, fx traders reported that demand for greenback increased at the official window. The Central Bank of Nigeria (CBN) fx data update revealed that the naira appreciated to N1534.78 per dollar on Thursday from N1535.61 following a two day bearish outing.
Foreign exchange supply in the interbank NFEM received some boost amid CBN intervention and improved Foreign Portfolio Investors (FPIs) inflows, AIICO Capital Limited said in a commentary note.
The naira traded at an intraday high of ₦1,533.5 on Thursday in the absence of significant fx pressures in the official window. The spot rate hit an intraday low of ₦1,533.45 per dollar as naira bulls maintain the status quo on the exchange rate outlook.
Data obtained from the Apex Bank platform revealed that Nigeria’s gross foreign reserves increased nearly $38.50 billion, representing a daily gain of roughly $132.75 million.
The nation’s external reserves balance surged due to the latest round of successive inflows from undisclosed sources, often oil receipts and remittances from Nigerians abroad, among others. In the global commodity market, prices of crude oil inched higher over a positive demand outlook in the US after data showed inventories fell by 0.8% last week.
Brent crude gained 68 cents to $69.19 per barrel, while U.S. West Texas Intermediate appreciated 86 cents to $66.11. Conversely, gold prices fell as signs of easing global trade tensions dampened demand for safe-haven assets.
Spot gold dipped by 0.54% to $3,369.50 per ounce, while U.S. gold futures closed 0.72% lower at $3,372.65. Outlook: Amid progress in trade talks, demand for safe-haven assets is expected to remain subdued. #Naira Reclaims Value as External Reserves Climb to $38.5bn NGX Crossed N84trn as Equity Investors Gain N406bn
