Nigerian Naira Firmer Against Dollar on Robust FX Liquidity
The Nigerian naira firmed to ₦1,362.5543 per US dollar at the official window on Tuesday, as forex supply eclipsed international payment requests.
The local unit extended its rally amidst rising FX turnover at the Nigeria foreign exchange market (NFEM) and a moderate surge in interbank transactions.
Daily FX update obtained by MarketForces Africa showed that the naira ended the day at N1362.5543 per dollar, from N1364.8344 the previous day.
Transactions were conducted between N1361 and N1364.7000 during the trading session in the absence of significant demand for forex – as against N1362 and N1368 intraday rates on Monday.
Traders told MarketForces Africa that financial institution activities at the NFEM window resulted in increased FX turnover, though interbank transactions were up moderately, reflecting improved liquidity.
The Apex Bank’s daily currency data revealed that NFEM interbank FX turnover surged 14% on the day to $156.228 million from $137.048 million recorded the previous day.
Interbank FX deals count, however, only increased slightly to 139 from 138 FX transactions executed the previous day at the official currency market.
In the parallel market, the naira closed flat at N1,415.00 per US dollar, widening the spread. Latest data from the CBN showed that Nigeria’s gross external reserves edged up due to a fresh inflow of US$1.91 million, settling at $51.92 billion.
In the global commodity market, gold gained 0.99% to $4,095.55/oz as softer oil eased inflation fears and reinforced a less hawkish Fed outlook. Brent dropped 5.16% to $79.45 per barrel, and US WTI dropped 5.46% to $75.9 on the prospect of a diplomatic resolution to the Iran conflict.
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