The Nigerian naira strengthened against the United States dollar in the Nigerian Foreign Exchange Market (NFEM), appreciating by approximately 0.10 per cent amid a continued rise in the country’s external reserves.
Data released by the Central Bank of Nigeria (CBN) showed that the official exchange rate closed at N1,369.11 per dollar, compared to N1,370.46 recorded at the previous trading session.
According to the apex bank’s daily foreign exchange update, transactions during the trading session were executed within a range of N1,368 and N1,373 per dollar, indicating improved liquidity conditions in the forex market.
Interbank foreign exchange turnover also recorded a significant increase, rising by more than 63 per cent to $65.21 million from $39.90 million recorded at the previous close.
Market analysts attributed the improved liquidity in the foreign exchange market to growing confidence and increased dollar inflows, despite the absence of direct intervention by the CBN over the past six weeks.
Meanwhile, Nigeria’s external reserves climbed to $51.06 billion, the highest level recorded since 2009. The growth in reserves has been supported by reduced oil import costs, sustained strength in global crude oil prices, and increased domestic crude oil production.
In the international oil market, crude prices declined on Monday following reports of renewed diplomatic engagement between the United States and Iran.
Mediators from Qatar and Pakistan disclosed that U.S. and Iranian officials had agreed on a roadmap aimed at reaching a comprehensive agreement within the next 60 days. Market sentiment was further affected after the U.S. Treasury Department authorised the sale of Iranian oil for a 60-day period.
As a result, international benchmark Brent crude futures for August delivery fell by more than three per cent to approximately $77 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for July delivery declined by over two per cent to around $74 per barrel.
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