Naira Strengthens in Official Market
The Nigerian naira closed at N1338 per US dollar in the official window on Thursday, bolstered by robust forex liquidity.
The market experienced sufficient US dollar volume amid fluctuating interbank FX activity. Foreign portfolio investors, exporters, and non-bank corporates remain key drivers of FX inflows, with intermittent support from the Central Bank.
The naira opened at N1446 per dollar and has since gained further value due to significant liquidity in the forex market.
Trading occurred between N1335 and N1345 per dollar at the official window, with total FX turnover amounting to $191.594 million, according to CBN data.
NFEM interbank FX turnover fell 19% to $191.594 million from $235.991 million the previous day, as the deal count declined to 176 from 213.
The naira strengthened by 42 basis points against the British pound to close at N1820.34, while the euro exchange rate appreciated 0.38% to N1526.12.
In contrast, pressure returned to the parallel market, with the dollar and euro rising 0.36% and 0.31% to ₦1,405.00 per dollar and ₦1,600.00 per euro, respectively, AIICO Capital Limited noted.
The naira, however, appreciated against the pound by 0.26% to ₦1,900. Nigeria’s gross external reserves expanded by $185.25 million to $53.30 billion, strengthening the buffer.
Brent crude oil prices hovered near $88 per barrel on Thursday following three straight sessions of losses.
Prices balanced potential supply relief from the Iran-Oman agreement on the Strait of Hormuz against lingering shipping uncertainty and escalating Ukrainian strikes on Russian energy infrastructure.
Saudi Arabia increased loadings at Persian Gulf terminals to bypass Red Sea risks. Brent crude is expected to remain volatile due to shifting shipping dynamics in the Middle East and ongoing disruptions to Russian exports.
The Central Bank of Nigeria reduced interest rates on OMO bills, raising N1.9 trillion.
