Naira Sees Sharp Gain as Foreign Reserves Top $50bn
The naira gained sharply at the official window as foreign reserves topped the $50 billion mark for the first time since January 2009, according to updated Central Bank of Nigeria (CBN) data.
At the official window, the CBN’s daily FX data publication showed that the spot rate appreciated by about 2% on Wednesday to N1376.1925 per dollar, from N1401 the previous day.
Reflecting improved FX liquidity in the official window, foreign transactions were conducted at an intraday low of N1373 and a high of N1388 per dollar.
In the parallel market, the naira also climbed to ₦1,393/$, reflecting improved currency sentiment across both the regulated official segment and the informal foreign exchange market.
Meanwhile, Nigeria’s gross external reserves topped $50 billion, according to a CBN publication, the highest level seen since 2009.
At the global forex market, the US dollar is mixed in the North American session. Heightened expectations of a rate hike next week have lifted the Australian dollar to new highs since June 2022.
The Japanese yen is the weakest of the G10 currencies as the dollar extended yesterday’s gains to almost JPY158.50, its best level since the Fed/Treasury reportedly checked rates on January 23. The PBOC set the dollar’s fix to a new multi-year low today.
Oil prices are firm but within yesterday’s ranges. Three ships were reportedly attacked in the Strait of Hormuz and Persian Gulf earlier today, raising supply risks.
The G7 leaders will consider a proposal by the International Energy Agency to coordinate the release of 300-400 mln barrels of oil from strategic reserves.
Gold is trading quietly in the upper end of yesterday’s range. So far today, it is in about a $25 range on both sides of $5200. Silver is off a little more than a dollar ($87) as it probes yesterday’s low.
April West Texas Intermediate (WTI) is trading firmly in the $86- $87 range in Europe, while Brent is trading at $90 per barrel. It mostly held above $82 but below $89. The International Energy Agency has proposed releasing 300-400 million barrels from its strategic reserves. Iran War Costs Europeans Billions of Euros in Energy Bills
