Naira Sees Largest Daily Gain, Rises to N1,401 Per Dollar
The naira recorded its largest daily gain since the beginning of the year at the Nigerian foreign exchange market on Tuesday, as US dollar supply eclipsed demand for foreign payments.
The Naira strengthened by 120 basis points or ₦17.73 against the US dollar at the Nigerian Foreign Exchange Market (NFEM) today, by closing the session at ₦1,401.22/$.
The exchange rate appreciation was driven by inflows from Foreign Portfolio Investors (FPIs) as the Naira traded as low as ₦1,400.00 per USD, with its highest at ₦1,415.00 during the session.
The Central Bank of Nigeria showed that the External Reserve sustained its improvement this week, up by $25.32 million from the previous day’s balance, bringing total reserves to $46.04 trillion.
The country’s foreign reserves is projected to climb further as global prices of crude oil continue to increase due to geopolitical disorder and increased production volume.
On Tuesday, Oil prices rose by around 2% on as producers reeled from a winter storm that hobbled crude production and affected refineries on the U.S. Gulf Coast over the weekend, with the slow restart of output from the Tengiz oilfield in Kazakhstan further boosting prices.
Brent crude jumped 3.71% or $2.40, hovering around $67.17 per barrel, while U.S. West Texas Intermediate (WTI) climbed 2.38%, to around $62.07.
Similarly, Gold pushed higher after breaking through the $5,000 per ounce milestone for the first time in the previous session, as persistent economic and geopolitical uncertainty drove investors to the safe-haven metal. First Holdco Loses 5.8% as Buying Sentiment Fades
