Naira Surges to N1,356 as NFEM Interbank Turnover Climbs
The Nigerian local currency, the naira, surged to N1,356 per dollar as interbank turnover and total currency bought and sold at the official window increased.
The official FX data published today by the Central Bank of Nigeria (CBN) revealed that intraday transactions were consummated between N1354.5000 and N1362.5000, reflecting increased FX liquidity.
Interbank turnover surged to N114.887 million across 141 deals, up from N71.156 million on Friday. Last week, the Naira strengthened across both official and parallel market segments. At the official window, the currency appreciated by 1.76% or N23.90 to close at N1,356.89/US$1.
Similarly, the parallel market recorded N20.00 gain, with Naira settling at N1,390.00/US$1. Despite the broad-based appreciation, the gap between the official and parallel markets widened marginally to N33.11/US$ from N29.21/US$1 in the prior week.
FX inflows into the NAFEM window moderated significantly, declining to US$571.80 million from US$1.06 billion in the prior week, according to Coronation Merchant Bank’s research report, indicating relatively tighter FX supply conditions.
The report indicated that Foreign Portfolio Investors (FPIs) remained the dominant source of supply, accounting for half of the inflows, US$282.20 million, accounting for 15.77% of total supply.
CBN followed with US$103.20 million, or 18.05%; non-bank corporates contributed 11.23%; exporters accounted for 12.94%; and other sources (including FDIs, Individuals, and other corporates) accounted for 3.90%.
External reserves fell to $448.85 billion, a depletion that analysts attributed to the CBN’s intervention in the FX market. #Naira Surges to N1,356 as NFEM Interbank Turnover Climbs
