Naira Regains Value as Interbank FX Turnover Rises
The naira regained value at the Nigerian foreign exchange market (NFEM) on Wednesday as improved hard currency liquidity reduced pressures from surging FX demand for international payments and settlements.
The naira spot rate settled at N1370.56 per dollar, the Central Bank of Nigeria (CBN) daily FX publication revealed, from N1375.62 the previous day.
During the intraday trading session, transactions were consummated between N1367 per dollar and N1376 as the CBN reported that interbank FX turnover increased on the day.
NFEM interbank FX liquidity increased to $130.549 million across 130 deals from $74.467 million reported the previous day. In the parallel market, the naira also gained traction against the US dollar, closing at N1380 per dollar.
The uncertainty about the US-Iran fragile ceasefire, which President Donald Trump has said is on “life support”, is weighing on risk-taking appetites today.
Brent and WTI are up over $3, and bonds and stocks have been sold. The US dollar is firmer against the G10 currencies. Most emerging market currencies are lower.
Ahead of the Xi-Trump meeting later this week, the People’s Bank of China continued to gradually lower the dollar’s reference rate. Oil Market Rallies on Geopolitical Hiccups
