Market News

The naira, yesterday, maintained its recent upward trend, strengthening to N1,500.92/$1 on the Nigerian Foreign Exchange Market (NFEM), compared with N1,506.09/$1 and N1,506.84/$1 on Tuesday and Monday respectively, data released by the Central Bank of Nigeria (CBN) shows.

The local currency also appreciated on the parallel market yesterday, rising to N1,520 per dollar compared with N1, 525/$1 and N1,528/$1, on Tuesday and Monday respectively Forex traders attribute the naira’s strengthening in the last few days to relatively low demand for dollars coupled with CBN’s FX interventions which are supported by healthy external reserves.

In its review of last week’s forex market activity, Coronation Merchant Bank said in a report, released on Monday, that “last week, the naira appreciated by 1.10 per cent (shedding N16.70) to close at N1,514.87/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In the parallel market, the exchange rate remained steady at N1,540.00/$1. “Total FX inflows settled at $567.2 million, down from the $706.7 billion recorded in prior week. Foreign Portfolio Investment (FPIs) led with the highest inflows contributing $184.1 mn (32.5%) to the overall inflows.

“Notably, the CBN intervened in the market accounting for $173.1 mn (30.5%). Meanwhile, inflows from Exporters and Non-bank Corporates contributed 16.6 per cent and 16.2 per cent, respectively, while others accounted for 4.3 per cent. Gross external reserves inched up by $37.85 mn w/w (0.09% w/w), reaching $41.31 billion.”