On Thursday, the naira saw fluctuations in the foreign exchange (FX) markets as the Central Bank of Nigeria (CBN) started settling its foreign exchange debt by paying local banks in US dollars.
According to MarketForces Africa, of the approximate $7 billion that the apex bank owed throughout the years, roughly 14 banks have been paid. The Apex Bank said that it has begun repaying its foreign exchange backlog in an attempt to stabilize the currency rate.
Notwithstanding the benefits of the adjustment, importers’ and manufacturers’ increased demand for the US dollar caused the exchange rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) to deteriorate.
During an intraday trading session, the naira depreciated by 0.9% to N793.28 according to data from the FMDQ website. The currency rate has rebounded well on the forex market and finished at N786.02 per dollar at midweek.
The Naira continued to do well in the parallel market despite a slowdown in currency demand due to speculative activity. The closing currency rate was N1,150 per US dollar, down from N1,175 earlier.
In other places, the Middle East’s protracted conflict, the US’s high oil inventories, and overall economic uncertainty all contribute to the pressure on the oil market.
The oil prices were hanging above $80 per barrel on Thursday, according to analysts update. Brent crude traded at $85.90 per barrel, while West Texas Intermediate (WTI) crude oil was around $81.71 per barrel.
Analysts said these levels were reminiscent of prices last seen before the Hamas attack on Israel and were influenced by traders’ reactions to the Federal Reserve’s announcement of not raising interest rates.
