Naira Touched Intraday High of N1405/$ in FX Market
The naira touched an intraday high of N1405 per dollar at the Nigerian foreign exchange market (NFEM) on Tuesday, as pressure from foreign payments persisted.
According to daily FX data published by the Central Bank of Nigeria (CBN), the naira closed at N1384 per dollar, up from N1378 the previous day.
Based on data from the CBN, the spot rate largely traded within the low and high bands of ₦1,370.00/US$ and ₦1,405.00/US$, respectively, today.
The exchange rate has been trending down for over 10 days following Apex Bank’s unusual FX purchase activity at the official market in February.
However, the naira is expected to trade with a stable bias in line with prevailing market demand and supply dynamics, supported by an improving external reserves position.
Nigeria’s gross external reserves edged higher, nearing $50 billion, amid sustained inflows, supported by remittances and foreign portfolio investors’ activity in the financial market.
Based on market consensus, oil FX receipts or inflows are expected to surge sharply due to tensions in the Middle East, a development that is positive for the country with significant hydrocarbon sales reliance.
Oil prices surged today after the U.S.-Israeli war on Iran disrupted Middle Eastern energy exports. Tehran’s attacks on ships and energy infrastructure closed Gulf navigation, causing production halts from Qatar to Iraq. MTN Nigeria Sheds N420bn as Investors Take Profit
