Currency Exchange Rates Soar Across All FX Markets

CBN Announces New Measures To Stabilize Naira

Currency rates rose across the foreign exchange markets on Tuesday as new foreign investors exited the local economy. According to the Nigerian Exchange, international portfolio investor transactions fell in April. Foreign direct investment has also decreased as the market suffers a lack of US dollars.

The Naira rose against the US dollar in the forex market for investors and exporters, trading higher at N462.3 from N463.

Similarly, the parallel market increased by 0.14% to N738 from N739 as demand for foreign currencies slowed.

This week in the global FX market, the global narrative and the EUR/USD move will be the primary drivers for the area. Global circumstances continue favorable, but the Fed and European Central Bank meetings this week will be crucial.

According to statistics from the FMDQ website, the Nigerian autonomous foreign exchange fixing (NAFEX) rate fluctuated in the N415-466 range on Friday but finished at N463.0. This indicates a week-on-week increase of +0.1% or N0.7.

Forex traded in the N462-478.6 area on the forward market. The 1-month contract fell by -0.2% to settle at N469.7, while the 3-month contract fell by -1.3% w/w to close at N496.2.

The retail secondary market intervention sales (SMIS) market fx spot rate stayed constant on Thursday, closing at N462. According to FX experts, the CBN has improved its market intervention latency.

Coronation Research said the gap between the NAFEX and the parallel market rate is 60%. According to data from FMDQ, NAFEX turnover decreased by -24.8% last week to USD323.7 million on Friday

The NAFEX window recorded an inflow of USD214.2m with the CBN accounting for 2.9%, FPIs accounting for 1.5%, non-bank corporates accounting for 37.5%, exporters accounting for 53.9%, and others accounting for 4.2%.


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