Naira Trades at N810, Parallel Market Rate Slides

The naira appreciated by about 6% at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as demand for foreign currencies spiked above supply level. The local forex market has been heat up with increasing demand for import payments. There is another side to it, research analysts at LSintelligence Associates said.

“Exchange rate is affected by spurious demand emanating from speculative activities”, the firm added in a note shared with MarketForces Africa. There have been notion that government may take drastic measure by neutralising the parallel market impacts on the exchange rate.

There is a plan to eliminate middlemen activities in the forex market, sources told MarketForces Africa. Exchange rate at the open market has continued to worsen even after the Central Bank of Nigeria (CBN) announced decision to lift restriction of 43 items banned in 2015.

Data from FMDQ review showed that the Naira edged the greenback by 5.51% at the organised FX market, closing at N801.10 to the dollar from N847.77 per dollar the previous day.

Cowry Asset managers resurgence to ease in demand pressure and FAAC inflow into that hit the system. On the contrary, in the parallel market, the Naira took further beating on Wednesday.

Open market exchange rates dropped by 2.77% as demand pressure continues to bite harder on the back of little or no dollar supply, closing at a new low of N1,300 against the US dollar. 

The commodities market continues to face bearish situation. This keep Nigerian External Reserves tight despite improved production volume toward meeting the Organisation of Petroleum Exporting Countries quota of 1.78 million barrel per day.

Global benchmark Brent crude traded at $ 87.97 per barrel, down by 0.11% from the closing price of $88.07 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $ 83.50 per barrel, down 0.28% from Tuesday’s close of $83.74 per barrel.

MarketForces Africa reported that crude oil prices dropped on Tuesday, giving up nearly half of the gains made since the Hamas attack on Israel as the short-term risk premium somewhat diminished.

Brent prices settled at around US$88 as the risk premium diminished yesterday as the demand outlook remains unimpressive.

Advertisement

CAF Awards: Okocha, Mikel...

BY KUNLE SOLAJA, MARRAKECH, MOROCCO. Quantity-wise, Nigeria may not weigh much in this year’s CAF Awards which hold in the next few hours in the Atlas...

Ronaldo marks his 1,200th...

Cristiano Ronaldo celebrated his 1,200th professional match with a goal and an assist as he helped his Saudi League side Al-Nassr to get a 4-1 win...

Juventus back on top...

Juventus delivered an efficient performance as they moved back to provisional top spot in Serie A on Friday, securing a 1-0 home win against a wasteful...

Africa Congress on Christianity...

Director of Sports of the Mountain of Fire and Miracle who is also the chairman of the Sporting Lagos, Godwin Enakhena has been honoured with a...

U.S. and Mexico submit...

The United States and Mexico submitted a joint bid on Friday to co-host the 2027 women’s World Cup that, if successful, would see the North American...

Armed Robbery Attack: Edo...

The Executive Governor of Edo State, His Excellency Godwin Nogheghase Obaseki has provided much-needed succour and support for the injured and traumatised players and officials of...

CAF Awards: Okocha, Mikel and Amuneke among legends expected to light up Marrakech

BY KUNLE SOLAJA, MARRAKECH, MOROCCO. Quantity-wise, Nigeria may not weigh much in this year’s CAF Awards which hold in the next few hours in the Atlas...

Ronaldo marks his 1,200th game in style as Al-Nassr bounce back

Cristiano Ronaldo celebrated his 1,200th professional match with a goal and an assist as he helped his Saudi League side Al-Nassr to get a 4-1 win...

Juventus back on top after clinical win against wasteful Osimhen’s Napoli

Juventus delivered an efficient performance as they moved back to provisional top spot in Serie A on Friday, securing a 1-0 home win against a wasteful...

Africa Congress on Christianity and Sports honours Godwin Enakhena

Director of Sports of the Mountain of Fire and Miracle who is also the chairman of the Sporting Lagos, Godwin Enakhena has been honoured with a...

U.S. and Mexico submit bid to co-host 2027 women’s World Cup

The United States and Mexico submitted a joint bid on Friday to co-host the 2027 women’s World Cup that, if successful, would see the North American...

Armed Robbery Attack: Edo State picks the hospital bill of injured, traumatised Sunshine players and officials

The Executive Governor of Edo State, His Excellency Godwin Nogheghase Obaseki has provided much-needed succour and support for the injured and traumatised players and officials of...

PFAs Pay N1.63trn Lump Sum to 442,000 Retirees in 15yrs – PenOp

The Pension Fund Operators Association of Nigeria (PenOp) said that the pension industry paid N1.63 trillion as lump sum to 442,000 retirees as at the second...

ETI Signs $200m Sustainability-Linked Loan With Syndicate Development Institutions

A syndicate of European Development Finance Institutions (EDFIs), led by Proparco, has signed The post ETI Signs $200m Sustainability-Linked Loan With Syndicate Development Institutions appeared first on...

NDIC to Pay N16.18bn Liquidation Dividends of 20 Failed Banks

The Nigeria Deposit Insurance Corporation (NDIC) says it is prepared to conduct 100 per cent liquidation dividend payments worth N16.18 billion for depositors of 20 failed...