Naira Softens as Foreign Currency Shortfall Lingers
The naira softened at the official market; traded at N1,652.25 per US dollar at the Nigerian autonomous foreign exchange market on Friday. According to information from the FMDQ Exchange’s official trading platform, the Naira fell N2.05.
This represents a 0.12 percent loss compared to the previous trading date, Thursday, when it exchanged at N1, 650.20 to a dollar. However, the total daily turnover increased to 296.63 million dollars on Friday, up from 214.73 million dollars recorded on Thursday.
At the Investor’s and Exporter’s (I&E) window, the naira traded between N1,699.00 and N1,620.00 against the dollar. In global commodities, oil prices are heading for a weekly decline due to an oversupply and a strong dollar impacting the market.
Brent crude is priced at approximately $71.58 per barrel, while WTI is around $67.61, supporting accretion into the external reserves as NNPC production hit 1.8 million barrels per day.
Data from the Central Bank showed that foreign reserves maintained its upward trend as the gross reserve level increased by USD 117.98 million to USD 40.24 billion.
In the forward market, the naira rates remained flat across the one- and three-month contracts. However, forward rate for a six- and 12-month contract appreciated
Elsewhere, gold prices are set for their largest weekly drop in more than three years, as anticipation of less aggressive interest rate reductions by the U.S. Federal Reserve strengthened the dollar, reducing gold’s appeal to investors. Currently, gold is trading at about $2,566.90 per ounce. #Naira Softens as Foreign Currency Shortfall Lingers
