Naira Sees Tiny Daily Gain as Unofficial Rate Hits N1600

The Nigerian troubled local currency, the naira, recorded an unimpressive daily gain in the official foreign exchange market. It is a false hope that the naira would rebound. The supply side has remained tight despite a sell order given to deposit money banks to reduce their net open position.

Data from FMDQ revealed that the naira appreciated by 0.34% against the US dollar in the Nigerian autonomous FX Window, closing at a rate of ₦1,498.25. This signifies that FX liquidity challenges may be worse than what the eyes can meet.

Based on the pattern observed by analysts, the naira declined strongly compared to when it struggled to claw back lost value across forex markets. The tight supply side in the unofficial market put additional pressure on the local currency today. Court Orders FCMB to Deposit N540m Defamation Damage Awarded to Prophet Omale

In the parallel market, the Naira closed at N1,600 against the US dollar as invisible demand passed through the space. This has widened the gap between official and parallel market spot rates to 7% after it has strongly reduced following intermittent FX market intervention by the Central Bank.

In the global commodity market, West Texas Intermediate (WTI) crude futures advanced by 1.05% to $77.45 per barrel on Thursday. Also, the Brent Crude increased by 0.92% to close at $82.35 per barrel.

Despite improved production volume as per the OPEC report, accretion unto Nigeria’s foreign reserve has been unimpressive, and limited.  Data from the CBN website showed that gross external reserves printed at $33.2 billion. #Naira Sees Tiny Daily Gain as Unofficial Rate Hits N1600
The post Naira Sees Tiny Daily Gain as Unofficial Rate Hits N1600 appeared first on MarketForces Africa.