On Monday, the naira saw a 3.3% increase in value and closed at N1,354.21 per US dollar on Nigeria’s independent foreign currency market. The local currency saw an increase vs the US dollar, which was the main currency, as the supply and demand for foreign cash narrowed.
Many currency dealers have stated that compared to the last few weeks, there is less demand for foreign money. The FMDQ Securities Exchange said in its monthly update that the Central Bank of Nigeria’s (CBN) foreign exchange infusion into the currency market experienced a notable decrease in April.
The overall supply from the domestic side decreased as a result of the apex bank’s decreased FX supply as well as a decline reported by non-bank business entities. Information gleaned from the FMDQ’s official trading platform showed that the naira gained N46.19 following a steep decline in forex market liquidity in April.
This represents a 3.29 percent gain from N1,400.40 to the US dollar exchange rate quoted at the official window on Friday. However, the total daily turnover dropped from Friday’s recorded 201.88 million dollars to 84.83 million dollars.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,441 and N1,285 against the US dollar. The naira closed at ₦1,415 at the parallel market as a result of demand constraints. The spot rate quoted remained higher than the CBN-determined rate based on the FX spreadcap placed on currency sold to the Bureau de Change operators (BDCs) at N1,021 at the last auction.
In the global commodity market, oil prices experienced an increase, with Brent crude rising by 0.62% to trade at $83.47 per barrel, and West Texas Intermediate (WTI) crude oil also advancing by 0.77% to trade at $78.71 per barrel
