Naira Strengthens to N1,456/$ at Central Bank FX Window
The naira strengthened against the US dollar at the official window on Monday, appreciating by 0.54% to ₦1,456.56/$ as FX liquidity pressures eased.
The local currency rally was supported by positive effects of FX interventions conducted by the Central Bank of Nigeria (CBN) last week. The authority sold $150 million to authorised dealers and banks to absorb pressures from increasing demand for dollar.
At the official window on Monday, the naira touched an intraday high of N1466, a significant improvement from N1469 quoted the previous time on Friday.
Showcasing the absence of FX demand pressure, some foreign payments were conducted at an intraday low of N1431 compared with N1460 quoted at the equivalent time on Friday.
FX traders said the authority has sold additional US dollars that have not been captured, helping the spot fx rate to stabilise ahead of the yearend period.
In the parallel market, the local currency rose to ₦1,466, reflecting improved currency sentiment and reduced pressures across both the regulated official segment and the informal foreign exchange market.
Nigeria’s gross external reserves recovery after significant outflow relating to foreign payments last week. Foreign reserves rose to $45.216 billion, up from $45.209 billion amidst oil price fluctuation.
Oil prices jumped after the U.S. intercepted a third oil tanker off the coast of Venezuela. U.S. President Donald Trump has announced a “total and complete” blockade of sanctioned Venezuelan oil tankers, while Ukraine has launched a drone strike on a Russian shadow fleet vessel in the Mediterranean.
Venezuela accounts for 1% of global oil supply. Brent crude for February delivery rose 2% to trade at $61.68 per barrel at 12:24 pm ET on Monday, while U.S WTI crude for January delivery was up 2.03% to trade at $57.67 per barrel. First Holdco Delivers 62% YTD Return, Downgrades to Sell
