Naira Rises as Nigeria Settles Eurobond Obligation

Naira Rises as Nigeria Settles Eurobond Obligation

The Nigerian naira rallied across the foreign exchange market Wednesday after the Federal government settled matured 10-year Eurobond obligation worth $500 million. With the positive sentiment in the forex market, the Naira appreciated against the United States dollar, sold at N782.49 at the investors’ and exporters’ window.

The latest spot rate represents a 0.75 per cent gain when compared with N788.42 which it was exchanged for the dollar on Tuesday.  Market data showed that the open indicative rate closed at N775.75 to one US dollar on Wednesday.

Foreign currency traders said an exchange rate of N806 to the dollar was the highest rate recorded within the day’s trading before it settled at N782.49. Meanwhile, the local currency sold for as low as N690 to the US dollar within the day’s trading.

At the close of the market, a total of 90.52 million dollars was traded at the investors’ and exporters’ window. Also, the parallel market rates appreciated marginally to N795 per greenback, from N797 as demand pressures eased.

Thus, the spread between official and open market rates collapsed, albeit, insignificant after about 6% decline reported at the Investors and Exporters FX window on Tuesday.

In the global oil market, Brent crude price rose 1.14% to $80.31 per barrel, while West Texas Instruments (WTI) crude gained 1.12% to $75.67 per barrel. Oil futures rose on Wednesday, driven by reports of decreasing Russian crude output, outweighing the rise in US crude inventories.

Against major trading partners, the US dollar index soften following a  lower-than-expected US consumer price index (CPI) figure and decreased expectations of policy rate hikes #Naira Rises as Nigeria Settles Eurobond Obligation Nigeria Sells Bonny Light, Qua Iboe Crude at Premium