Naira Hits N1,328.50 as Spread Widens to N59
The official naira closed at N1,328.50 while the parallel market rate reached N1,387. The gap between the two rates expanded significantly.
Key points
- The official naira closed at N1,328.50, down 0.05% from the prior day.
- The parallel market rate fell 0.51% to N1,387, widening the spread to N59.
- Nigeria's external reserves increased to $54.808 billion despite market pressures.
The naira lost value against the US dollar in Nigerian markets on Monday. The official rate closed at N1,328.50. This marked a 0.05% decline from the previous day.
MarketForces Africa reports that liquidity shortages drove this move. Demand for foreign currency outpaced available supply. The Central Bank of Nigeria cut its benchmark rate recently.
Spread widens to N59
The parallel market rate depreciated by 0.51% to N1,387. This increase widened the gap between official and parallel rates. The spread climbed to N59 from N52 the previous day.
This divergence signals a tight supply of dollars. Traders in the informal sector demanded more currency. The official market saw less pressure on the exchange rate.
Reserves rise to $54.8 billion
Nigeria's gross external reserves increased to $54.808 billion. The economy absorbed foreign exchange despite global price changes. Oil prices influenced the broader market environment.
Brent crude rose 2.16% to $102.54 per barrel. This lift contributed to higher foreign inflows. The year-to-date gain for oil reached 68.51%.
Naira holds against pound
The local currency gained against the British pound. It settled at N1,762.92 in the official window. The euro also saw a stable exchange rate.
The naira traded at N1,514.89 against the euro. These moves contrast with the dollar weakness. The Central Bank released these figures in its daily report.
