Naira Loses 3.57% as Forex Trades Rise to $65m
The Nigerian local currency, the naira, lost 3.57% to rising foreign currency demand at the Investors and Exporters window, data from FMDQ showed. The volume of the US dollar transacted at the official window rose as manufacturers, and imports logged higher FX demand on Wednesday.
FX data showed the spot exchange rate printed at N771.59 per United States dollar as inflows into the official window come under threat despite higher crude oil prices in the global market. The exchange rate had printed at N744.97 per greenback on Tuesday.
Data from FMDQ showed that the open indicative rate closed at N766.67 to the dollar on Wednesday. Analysts said a spot exchange rate of N799.90 to the dollar was the highest rate recorded within the day’s trading before it settled at N771.59.
The naira sold for as low as 705 to the greenback within the day’s trading, according to FX traders notes. On Wednesday, a total of 65.30 million dollars was traded at the investors and exporters window. The sum translated to an increase of about 3% when compared with a total of 63.60 million dollars traded at the investors and exporters window on Tuesday.
In the parallel market, the naira exchange rate depreciated by 0.54% to N925 as demand for Invisibles by FX users increased. In a report, Fitch flagged the Central Bank of Nigeria’s (CBN) audited report on Nigeria’s net external reserves for transparency issues.
At the close of business yesterday, the total balance in external reserves tracked below $34 billion amidst rising FX obligations. Last week, there were inflows into external reserves, which some analysts attributed to surging crude oil prices – especially Nigeria’s grade.
Crude oil prices rose in afternoon trading, with Brent crude up 0.31% to $90 per barrel and West Texas Intermediate (WTI) crude up 0.56% to $87 per barrel due to supply tight.
Traders assessed the impact of extended output cuts by Saudi Arabia and Russia against growing global energy demand concerns. #Naira Loses 3.57% as Forex Trades Rise to $65m