Naira Rises as Additional FX Inflow Boosts External Reserves
The naira appreciated in the official window after additional foreign currency inflows boosted Nigeria’s external reserves. At the Nigerian autonomous FX market, the naira appreciated by 0.47% to close at ₦1,554.65 per US dollar.
FX analysts said eligible US dollar demand remained elevated even though the exchange rate trended positively– albeit marginally. According to data from the Central Bank of Nigeria (CBN) gross external reserves climbed to about $35.18 billion, covering 8 months of imports based on the latest trade data.
In the informal market, the naira also saw gain as FX demand for invisible transactions fell below the volume of US dollar available. The naira also gained 1.22%, ending the day at an average of ₦1,540 per US dollar at the parallel market. Exchange rate movements across the forex market widened the FX gap to more than N15, from as low as N2 early in the week.
In the global commodity market, crude oil prices increased as US inflation eased, bolstering hopes that the Federal Reserve will cut interest rates later this year.
As a result, Brent prices increased by 0.27% to $85.31, while WTI prices increased by 0.48% to $82.49. Additionally, gold prices rose by 1.64% to $2,418.40 per ounce at the time of this report. #Naira Appreciates as Additional FX Inflow Boosts FX Reserves
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