Spot FX Rate Drops to N1,455 at Nigerian Currency Market
The naira spot rate fell at the Nigerian foreign exchange market (NFEM) to N1455 per dollar as pressure on liquidity continues to linger. The market is in apparent shortage of US dollars, causing the exchange rate to hover above N1450.
The exchange rate has failed to improve despite sustained FX support the Central Bank is providing, funding international payments. The Apex Bank is fuelling demand for the naira by selling dollars to banks amidst huge OMO bills participation by foreign investors.
The Central Bank reported on Wednesday that Naira depreciated slightly against the US dollar as demand pressure continues despite the authority’s FX intervention to boost liquidity.
The NFEM Rate dipped by N1.00 per dollar to close at N1,455.3823/$, having traded within a range of N1,458.00 and N1,453.76 per US dollar during the session.
Again, Nigeria’s gross external reserves expanded to about $45.4 billion, based on latest data from the CBN, reflecting improve inflows from remittances and crude oil receipts amidst uncertainties.
Global oil prices settled higher after officials said the U.S. seized an oil tanker off the coast of Venezuela, adding to concerns about immediate supplies.
Brent crude rose 32 cents, or 52 bps, to $62.26 per barrel, while U.S. West Texas Intermediate (WTI) advanced 27 cents, or 46 bps, to $58.52.
Also, gold prices reversed course to rise on Wednesday after the Federal Reserve’s rate cut, though uncertainty over next year’s policy outlook persisted, while silver hit an all-time peak.
Spot gold rose by 0.41% to $4,226.91/oz, while U.S. gold futures increased by 0.49% to $4,257.00/oz. Analysts expect markets to open with cautious optimism—supported by the Fed rate cut and steady oil prices — with prices for gold and silver likely to remain firm while bond and oil markets hold steady
