Naira Steadies at N1463/$ in Absence of FX Liquidity Pressure
Reflecting the absence of demand pressures, the naira held its position against the US dollar at the Nigerian foreign exchange market. An update to the FX report by the Apex Bank showed signals there was general improvement in US dollar volume supplied versus demand.
The spot rate touched an intraday low of N1452 per dollar, though the rate closed much higher at N1462 per dollar, tracking the intraday high of N1466.
The update FX data signalled absence of US dollar demand pressures in the currency market as against last week trend that forced the Central Bank intervention.
The market anticipates a boost from exporters FX inflows, and international oil companies to drive FX liquidity higher, and enhance naira stability.
At the close of trading session, the naira held steady against the U.S dollar across both markets on Wednesday, closing flat at ₦1,463.44/$ at the official window and ₦1,492/$. In the parallel market, reflecting stable demand for the local currency.
Ahead of Eurobond repayment, the Nigeria’s gross external reserves steadied at $42.792 billion. Eurobond worth $1.1 billion will be repaid next month, and the government plan to take external borrowing in Q4.
“There is a probability that the government will refinance the Eurobond repayment with the external loans which have been officially approved,” a Broadstreet investment banker told MarketForces Africa.
Nigeria plans to raise more than $2 billion in foreign loans from the international market in the fourth quarter, though the date and time have not been officially revealed.
Today, both the crude oil benchmarks extended gains as optimism about trade talks between the U.S. and China boosted sentiment. Amidst profit booking, gold dropped, extending losses from the massive plunge on Tuesday. Cryptocurrencies are trading on a mixed note.
# Naira Steadies at N1463/$ in Absence of FX Liquidity Pressure Dangote Cement Crosses N10trn, Trades Below Analysts Target Price
