Exchange Rate Improves as CBN Buys Naira with $39m

Exchange rate improved on Thursday after the Central Bank of Nigeria (CBN) spent $39 million to buy naira from authorised dealers banks in the official window at the rate of N1,570 and N1,580 per US dollar.

The Nigerian local currency, the naira, strengthened further against the US dollar in the foreign exchange market as CBN FX sales and growing external reserves reflated boost investors’ confidence.

The naira appreciated by 2.41%, closing at ₦1,570 per US dollar, according to data obtained from the FMDQ platform. Demand for FX reduced moderately in the official window after the Central Bank FX sales to authorised dealers.

The CBN intervened in the FX market by selling $39.00 million at a range of N1570 – N1580 per greenback to authorised dealers to boost FX liquidity in the space.

In the informal currency market, traders reported that the naira closed at ₦1,595 per dollar, down by N5 on each greenback amidst nationwide protest.

FX demand pressures in the parallel market had lifted exchange rate above N1,600 before the naira reclaimed value. 

Elsewhere, the balance in gross external reserves climbed to $36.797 billion yesterday. The balance in the nation’s foreign reserves continue to maintain uptrend, to hit 18-month high.

The pattern showed that FX inflows have been boosting the external reserves over the days now, suggesting possible US dollar remittances from NNPCL oil activities.

In the global commodity market, Brent crude fell by 0.04% to $80.69 per barrel, and West Texas Intermediate (WTI) crude decreased by 0.51% to $77.51 per barrel on Thursday.

This decline was driven by mounting concerns over slowing demand, which overshadowed fears of potential supply disruptions arising from the ongoing Middle East conflict.

Additionally, the ISM Manufacturing purchasing manager index (PMI) highlighted a larger-than-anticipated contraction in the U.S. manufacturing sector, reflecting weakened demand and reduced output. #Exchange Rate Improves as CBN Buys Naira with $39m

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