Naira Value Improves as CBN Intervenes in FX Market With $29m
The value of the Nigerian naira improved at the foreign exchange market due to sufficient US dollar volume supplied positioned against FX demand for international payments logged by market platers.
Updated data highlighted that the Central Bank of Nigeria (CBN) official exchange rate closed the week at N1501 per dollar on Friday supported by fx auction sold to banks and additional inflows across other sources.
At the official Nigerian Autonomous Foreign Exchange Market window, the local currency appreciated by 0.89% week-on-week to close at N1,501.50/$1, buoyed by improved liquidity and sustained dollar inflows.
The CBN sold $29.10 million to authorised dealer, banks this week to support the local currency amidst growing external reserves, analysts at Cordros Capital Limited said in a commentary note.
Meanwhile, Nigeria’s gross external reserves increased for the tenth consecutive week, growing by USD87.11 million week on week to USD41.66 billion
The foreign exchange market recorded stronger performance for the naira across key trading segments with inflows from the CBN, exporters and foreign portfolio investors.
In the parallel market, the naira posted a 1.85% gain, the exchange rate strengthened to an average of N1,510/$1. This broad-based uptick reflects renewed trader confidence and a moderation of speculative pressures in the informal market.
Oil prices dropped around 2% on Thursday as U.S. demand concerns and oversupply worries outweighed Middle East and Ukraine conflict risks. Brent fell $1.12, or 1.7%, to $66.37, while WTI slipped $1.30, or 2.0%, to $62.37.
Gold steadied near record highs, with soft U.S. jobs data reinforcing Fed rate cut bets despite firmer inflation. Spot gold dipped 0.2% to $3,632.49, while U.S. futures eased 0.2% to $3,673.60.
Market participants are increasingly sceptical about China’s capacity to sustain its current level of oil imports and maintain low OECD inventories. Investors are also monitoring potential new sanctions that could impact Russian oil supply. #Naira Value Improves as CBN Intervenes in FX Market With $29m
