The Nigerian naira traded mixed on the foreign exchange market on Monday (FX), as the gross balance of external reserves surpassed $38 billion.
According to data from the Central Bank homepage, Nigeria’s foreign reserves rose from $37.868 billion to $38.058 billion. The continuous infusion of US dollars into foreign reserves has heightened the prospect of more FX intervention, as growing pressure keeps the naira on the edge.
According to FX spot data from the FMDQ website, the naira fell by 0.08%, closing at ₦1,541.94 per US dollar at the official market. However, demand pressures in the alternative foreign currency market, sometimes known as the parallel market, have eased.
Channel check conducted by MarketForces Africa showed that the naira closed at ₦1,670 to the US dollar, gaining N5 when compared with spot rate on Friday.
After the re-introduction of its retail Dutch auction system in August, the Central Bank of Nigeria (CBN) failed to return to sell FX to users in September. Analysts had expected the apex bank to maintain the new Dutch FX auction to stem the tide against the naira across FX markets.
In the global commodities market, oil prices are on track to register their third consecutive monthly decline due to increased supplies from OPEC+ and reduced demand in China. At the time of the report, Brent prices fell by 0.22% to $71.82, while WTI prices saw a slight increase of 0.29% to $68.38.
In a similar trend, gold retreated from its recent peak but is still positioned for its largest quarterly increase in over eight years, supported by geopolitical factors and the U.S. Federal Reserve’s interest rate reduction, reaching $2,659.70 per ounce.
