Naira Rises as CBN Injects Additional Dollar into FX Market
NAIRA: In the local currency market, the Central Bank of Nigeria’s (CBN) official exchange rate appreciated by N5.50 per US dollar on Tuesday as FX demand pressures eased.
Investment banking firm CardinalStone Partners Limited said in its investor note that the CBN was in the market today, selling over $30.00 million at rates between N1,590.00/$ and N1,601.50/$.
Accordingly, the naira appreciated at the CBN NFEM window by 1.66% to close at N1,599.00 per greenback. However, in the parallel market, the naira depreciated by 31 bps to settle at N1,620.00/$.
The spot rate improved as demand for the US dollar was sufficiently met by FX market liquidity, while foreign portfolio investors started to slow down the pace of selloffs in the Nigerian financial market.
Data showed that the central bank has been driving US dollar volume at the Nigerian Autonomous Foreign Exchange Market (NAFEM) with sustained FX intervention sales to banks.
Latest data showed that the NAFEM window recorded an inflow of US$847 million compared to US$795 million from the previous week, driven by increased supply by the Apex Bank.
The breakdown showed that the CBN accounted for 22.87% of the total inflow, FPIs 32.26%, non-bank corporates 22.0%, exporters 17.97%, and other sources accounted for 4.90% of the volume drive.
In the global commodity market, oil prices slipped despite encouraging news, such as U.S. tariff exemptions for electronics and a recovery in China’s crude imports for March.
However, worries about the prolonged U.S.-China trade conflict and its potential to dampen global economic growth and energy demand overshadowed these positives. Brent crude fell 42 cents, or 0.65%, to $64.34 per barrel, while U.S. West Texas Intermediate dropped 53 cents, or 0.9%, to $60.97.
Gold, after touching a record high, retreated as investor risk appetite improved due to tariff relief. Spot gold dropped 1.1% to $3,200.11, and U.S. gold futures slid 0.9% to $3,216.20. On Tuesday, gold rebounded 0.6% to $3,230.18, supported by safe-haven demand and a weaker dollar amid continued tariff uncertainty.
#Naira Rises as CBN Injects Additional Dollar into FX Market NGX Delists Niger Insurance, 2 Others, as Investors Gain N488bn
