Naira Rises as Interbank FX Turnover Hits $416m, Deals Surge
The naira rose against the US dollar at the official window as interbank FX activities increased sharply, according to data released by the Central Bank of Nigeria (CBN).
At the Nigerian foreign exchange market (NFEM), the naira closed at N1369 per dollar, extending its positive movement to the third day in the absence of significant pressures at the supply side.
FX liquidity was boosted by inflows from foreign portfolio investors, exporters and non-bank corporates. The significant liquidity and strong investor sentiment aided the naira recovery from the recent slump.
The exchange rates quoted for intraday transactions hovered between N1365 and N1378 per dollar, suggesting a significant improvement in US dollar volume availability.
Financial institutions’ activities at the interbank FX window increased sharply, with total turnover settling at $416.420 million on Wednesday, up by 29% from $322.664 million recorded the previous day.
The number of deals counted at the NFEM window also increased to 198 from 110 on Tuesday, signalling higher demand for foreign payments matched adequate FX inflows.
With more than $52 billion in gross external reserves, analysts said FX market is expected to remain stable with a mild weakening bias, supported by CBN liquidity measures and FX inflows.
In the global commodity market, oil prices jumped on Wednesday, with the benchmark international contract Brent North Sea crude surpassing $95 for the first time in nearly six weeks as the United States and Iran carried out more strikes.
Crude futures went on to give up some of the gains but still rose around three per cent.US Secretary of State Marco Rubio said Iran could not be allowed to gain control over traffic through the Strait of Hormuz, through which a fifth of the world’s oil normally flows.
While Rubio said the United States remained willing to engage in “constructive negotiations” with Iran, he said “the problem we are currently facing is that they are not taking the negotiations seriously”.
Fresh US strikes triggered air defences in Tehran after President Donald Trump warned he was “not finished” with a war with Iran that has already cost his nation $37.5 billion.
Trump later vowed that the United States would bomb Iranian civil infrastructure every time Tehran fired at ships in the strategic Strait of Hormuz. Oil Prices Surge, Brent Tops $90 on Heightened Supply Risk
