Naira Tumbles as Interbank FX Turnover Drops by 43%
The naira tumbled against the US dollar as interbank FX turnover fell by 50% at the Nigerian foreign exchange market (NFEM) on Friday,
In its daily FX data, the Central Bank of Nigeria (CBN) disclosed that the official rate closed at N1370.4556 per dollar, N1363.4050 the previous day.
This signifies extended liquidity pressures at the official window amidst a slowdown in FX intervention. International transactions consummated at the CBN FX platform showed that the naira hovered between N1365 and N1374 during the session ended on Friday.
Interbank FX turnover declined by about 43% to $39.897 million across 59 deals, from $69.918 million the previous day. The latest US dollar flow was the lowest in the last five trading sessions. Naira plunged throughout the week amid lower US dollar supply and growing demand for foreign payments.
Brent crude oil prices rose Friday after talks between the U.S. and Iran in Switzerland were abruptly called off, underscoring lingering uncertainty over efforts to turn an interim agreement into a lasting peace settlement.
The international benchmark, Brent, gained 0.9% to close at $80.57 per barrel. West Texas Intermediate futures were trading 1.23% higher at $77.54 earlier Friday afternoon.
Prices briefly turned lower after Israel and Iran-backed Hezbollah agreed to a ceasefire. Switzerland’s foreign ministry said U.S.-Iran talks scheduled to take place at Bürgenstock on Friday would not proceed as planned. Naira Falls to N1,360 as Interbank FX Turnover Dips by 57%
