Naira don weaken against US dollar for official foreign exchange market as renewed demand for international payments put pressure on local currency, even though market liquidity rise well well. Data from Nigerian Foreign Exchange Market, NFEM, show say naira close at N1,329.15 per dollar, compared with N1,326.30/$ for previous trading session. The movement mean depreciation of N2.85, or about 0.21%, and e show how Nigerian currency still dey sensitive to changes in dollar demand and supply.
Trading data show say dollar exchange within relatively wide range during the session. Transactions complete between N1,326/$ and N1,333.50/$. The upper end of the range indicate pockets of demand pressure as businesses, banks and other market participants seek foreign currency to meet international obligations. But trading activity increase significantly, suggesting improved dollar availability compared with previous session.
According to Central Bank of Nigeria daily foreign exchange update, interbank FX turnover jump by more than 174% to $262.12 million, from $95.61 million recorded a day earlier. Number of interbank transactions also increase to 172 deals, compared with 109 previously. One report from Vanguard talk say interbank turnover for NFEM grew by 177.6 percent to $262.12 million from $94.4 million on Monday.
While naira lose ground at official window, parallel market see different picture. Vanguard report talk say Naira appreciate to N1,380 per dollar from N1,390 in parallel market on Monday. Legit.ng report talk say currency strengthen to about N1,370 per dollar, improving by N10 from previously reported rate of N1,380/$. The contrasting movements narrow di gap between official and parallel-market rates, one important indicator wey businesses and investors dey watch to assess Nigeria foreign exchange market. Vanguard report put di margin between parallel and official markets at N50.5 per dollar, down from N61 per dollar on Monday.
FX analysts believe say CBN recent interventions and broader market reforms dey help contain sharp currency swings, although demand for dollars remain major factor. Analysts at Herwood Securities Limited talk say forex market fit remain relatively stable in near term, with movements largely determined by available liquidity and demand conditions. Di firm talk say naira fit continue to record modest fluctuations as market participants react to prevailing supply and demand dynamics.
Providing additional buffer for currency market, Nigeria gross external reserves climb further to $54.607 billion, supported partly by stronger hydrocarbon revenues. Di reserve level na highest recorded since 2008 and e fit strengthen CBN capacity to support liquidity in FX market when necessary, according to report by MarketForces Africa. For businesses and households, immediate focus remains on whether increased dollar supply go consistently match demand.
CBN data show say indicative exchange rate for naira rose to N1,329.5 per dollar from N1,329 per dollar on Monday, indicating 50 kobo depreciation for local currency. Legit.ng earlier report say naira strengthen against United States dollar for official foreign exchange market after Central Bank of Nigeria inject fresh dollar liquidity into system. Local currency appreciate to N1,328.2154 per dollar at NFEM, improving from N1,329.2129/$ recorded in previous session.
