The naira regained some of its lost exchange rate value in the official market as the amount of US dollar transactions decreased on the day. According to spot data from the FMDQ platform, the naira rose by 0.68% and closed at ₦1,678.93 per US dollar on the official market.
The naira exchange rate has risen to N1690 per US dollar due to a lack of foreign cash in the official market. After three days of downward pricing, the naira recovered N11.44 on Tuesday, despite a series of post-devaluation unfulfilled expectations.
Analysts cited limited US dollar liquidity at the Nigerian independent foreign exchange market as a drag on naira value.
However, the Central Bank of Nigeria’s (CBN’s) last auction spot prices demonstrated that the central bank is now satisfied with the official currency rate trading between N1600 and N1700 per greenback.
On Tuesday, the overall daily transaction in the official FX market fell to 128.59 million dollars, down from 173.14 million dollars on Monday. In the Investors and Exporters (I&E) window, the naira traded between N1,698 and N1,631 versus the dollar.
In the parallel market, the naira finished at ₦1,735 per US dollar due to sustained demand for invisible transactions this week. Despite global commodity market uncertainty, external reserves increased to $40.274 billion this week.
Prices of crude oil experienced a slight increase after Ukraine launched longer-range, U.S.-supplied missiles at Russia. As a result, Brent crude rose to $73.83 per barrel, while WTI increased to around $69.65.
Likewise, gold prices advanced for the second consecutive session, reaching a one-week high as escalating tensions between Russia and Ukraine triggered a demand for safe-haven assets, with investors looking for important indicators regarding the Federal Reserve’s interest rate strategies.
Gold was valued at about $2,628.20 per ounce in the commodities market at the close of trading hour on Tuesday.
