Nigeria’s multiple exchange rates face the same direction in the currency market on the back of liqudity, reflecting draught of US dollar in the market in the absence of aggressive FX intervention.
The Central Bank of Nigeria (CBN) daily FX spot rate showed that the local currency fell by about N2 to N1,608.60 at Nigeria foreign exchange market (NFEM),which has become the official defence rate, from N1606.64.
FMDQ spot FX rate showed that, the naira nosedived against the US dollar to close at N1,615 amidst liquidity challenge. In the absence of sufficient inflows from other sources, the CBN was active in the FX market today, providing liquidity with a total sale of $50.00 million within the ranges of N1,605.10 – N1,608.
After sixth inflows, Nigeria’s external reserves rose to $38.096 billion, official record of foreign currency movements showed. Oil prices dipped on Wednesday as investors shifted attention to upcoming U.S.-China trade talks, following a recent rebound from earlier losses.
In the global commodity market, price of brent crude futures fell 71 cents, or 1.14%, to $61.44 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 66 cents, or 1.12%, to $58.43 a barrel.
Meanwhile, gold prices declined over 1%, pressured by a stronger dollar and renewed optimism surrounding trade discussions. Investors also remained cautious ahead of the Federal Reserve’s policy decision later in the day.
Spot gold slipped 1.3% to $3,385.48 an ounce while U.S. gold futures were down nearly 1% at $3,392.80, extending declines from the previous session.
Analysts said oil market volatility will likely continue as OPEC+ increases supply faster than anticipated, compounded by ongoing uncertainty in U.S. policymaking.
