Naira Rises Against US Dollar by 0.61% to ₦1,607.15
The Nigerian naira appreciated against the US dollar in the forex market at the beginning of the week following the Central Bank of Nigeria (CBN) efforts to boost the local currency.
The apex bank has started selling FX to banks and other authorized dealers in the currency market to increase foreign currency liquidity in the market. This has not helped enough, but still provided a support level that kept the naira a bit hard to push.
The local currency has failed to recalibrate against the US dollar and other primary currencies due to relatively insufficient FX volume in the currency.
The monetary authority is expected to conduct retail Dutch Auction FX sales on Wednesday, the auction which the authority had suspended around 2015. The move is to sell forex to end users with genuine requests.
Data from the Central bank showed that Nigeria’s gross external reserves climbed to $36.84 billion, sustaining its day to day accretion – the pattern which suggests NNPCL income passes through the CBN.
In the global commodity market, crude oil declined today on fears the economy might be teetering on the brink of a recession.
Brent prices decreased by 0.59% to $76.36, while WTI prices fell by 0.73% to $72.98. Gold prices eased in volatile trading today as investors liquidated positions in tandem with a broader equity sell-off. Elsewhere, the price of gold decreased by 0.99% to $2,445.20 per ounce. Nigeria’s US Dollar Inflows Slump to 5-Month Low
