Naira Mixed as Nigeria’s External Reserves Cross $38 Billion
The Nigerian local currency, the naira, traded on a mixed note across the foreign exchange market on Monday (FX) as gross balance in external reserves crossed $38 billion.
According to data from the Central Bank portal, Nigeria’s foreign reserves increased to $38.058 billion from $37.868 billion. The sustained US dollar inflow into the foreign reserves has raised hope of further FX intervention as mounting pressure keeps the naira at the edge.
According to FX spot data from the FMDQ platform, the naira depreciated by 0.08%, closing at ₦1,541.94 per US dollar at the official market. However, demand pressures in the alternative foreign currency market or the parallel market eased.
Channel check conducted by MarketForces Africa showed that the naira closed at ₦1,670 to the US dollar, gaining N5 when compared with spot rate on Friday.
After the re-introduction of its retail Dutch auction system in August, the Central Bank of Nigeria (CBN) failed to return to sell FX to users in September. Analysts had expected the apex bank to maintain the new Dutch FX auction to stem the tide against the naira across FX markets.
In the global commodities market, oil prices are on track to register their third consecutive monthly decline due to increased supplies from OPEC+ and reduced demand in China. At the time of the report, Brent prices fell by 0.22% to $71.82, while WTI prices saw a slight increase of 0.29% to $68.38.
In a similar trend, gold retreated from its recent peak but is still positioned for its largest quarterly increase in over eight years, supported by geopolitical factors and the U.S. Federal Reserve’s interest rate reduction, reaching $2,659.70 per ounce. #Naira Mixed as Nigeria’s External Reserves Cross $38 Billion CBN Defends Naira with $39m in Forex MarketThe post Naira Mixed as Nigeria’s External Reserves Cross $38 Billion appeared first on MarketForces Africa.