Market News

Market activity improved significantly, on Friday, with interbank turnover rising to $124.34 million from $74.26 million recorded on Thursday

BY Chima Nwokoji, Nigerian Tribune

The naira posted a weekly appreciation against the United States dollar across both the official and parallel foreign exchange markets, despite recording a marginal decline at the close of trading on Friday.

Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency closed at N1,342.50/$1 on Friday, April 17, compared with N1,341.01/$1 on Thursday, indicating a slight depreciation of N1.49.

The simple average exchange rate for the day stood at N1,343.42/$1.

However, on a weekly basis, the naira strengthened by 1.13 percent in the official market to close at N1,343.64/$1, while it also appreciated by 0.30 percent in the parallel market to N1,369/$1.

Market activity improved significantly, on Friday, with interbank turnover rising to $124.34 million from $74.26 million recorded on Thursday.

The number of deals also increased sharply to 145 transactions, compared with 82 deals in the previous session, suggesting heightened demand and stronger participation in the market.

Trading data showed that the naira had opened the week at weaker levels before gradually recovering. The currency traded at N1,358/$1 on April 13, strengthened to N1,348/$1 on April 14, and further improved to N1,341.99/$1 on April 15.

Compared with earlier levels of N1,369/$1 on April 8 and N1,365/$1 on April 9, analysts said the latest trend reflected continued volatility in the foreign exchange market, although recent Central Bank interventions appeared to be supporting stability.

Foreign reserves, however, declined by 0.23 percent during the week to 48.70, amid sustained interventions by the Central Bank of Nigeria (CBN) to stabilise the currency.

Analysts attributed the decline in reserves to continued debt servicing obligations, reduced inflows from crude oil earnings, and capital outflows linked to cautious foreign investor sentiment.

They noted that while recent gains by the naira were encouraging, sustained exchange rate stability would depend largely on stronger foreign currency inflows, improved oil receipts, and continued reforms to deepen market confidence.

Meanwhile, global crude oil prices remained under pressure during early Asian trading on Friday, following the announcement of a 10-day ceasefire between Israel and Lebanon, as well as signals from United States President Donald Trump that negotiations with Iran could resume over the weekend.

At the time of reporting, West Texas Intermediate crude traded at $84.67 per barrel, representing a 10.58 per cent decline, while Brent crude fell by 9.89 percent to $89.56 per barrel.

Both oil benchmarks remained significantly below the triple-digit levels reached earlier in the week after a previous round of talks collapsed.