Naira Slides to N1538/$ Despite Exporters FX Boost
The naira slid to N1538 in the Nigerian autonomous foreign exchange (FX) market (NAFEM) despite US dollar inflows from exporters.
On Monday, the local currency ended five days rally in the new week due to renewed demand pressure for US dollars.
However, The naira appreciated by 2.4% to N1,540.78 per greenback on BMatch, the Electronic Foreign Exchange Matching System (EFEMS).
The exchange rates on BMatch, and FMDQ platform quotes have inched closer amidst search for true value for the Nigerian naira.
Spot data from the FMDQ platform showed the Naira depreciated by 0.23%, closing at N1,538 per US dollar in the official market.
The local currency traded within a tight range against the US dollar,as analysts noted that rates fluctuated between N1,524.50 and N1,554.00 in the FX market
Analysts observed the local currency received support from US dollar sales by exporters, ultimately settling at N1,538.50.
Latest data from the National Bureau of Statistics showed that Nigeria’s export surged past imports in the third quarter of 2024.
Exports grew by 17% to N20.5 trillion in Q3, while imports increased by 9% to N14.7 trillion.
The resultant trade surplus for Q3 2024 stood at N5.8 trillion, marking the eighth consecutive quarter of trade surpluses.
This consistent surplus indicates Nigeria’s growing trade strength and the positive impact of export-led growth strategies, Cowry Asset Limited said in a note.
In the global commodities market, oil prices rose approximately 2% following reports that China, the largest oil importer, is considering its first monetary policy easing since 2010.
The easing policy is Beijing way to stimulate economic growth, according to state media referencing a Politburo meeting.
Brent crude is valued at $72.35 per barrel, while WTI is around $68.59. Meanwhile, gold prices increased as China’s central bank resumed its gold purchases after a six-month hiatus.
The move coincides with growing expectations of an interest rate reduction at the upcoming Federal Reserve meeting. Gold is priced at about $2,678.20 per ounce.#Naira Slides to N1538/$ Despite Exporters FX Boost#
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