The naira remained steady in the official market, with a slight appreciation in electronic trading, supported by Nigeria’s recent $2.2 billion Eurobond issuance.
The value of the naira remained constant at N1,672.69 to the dollar at the Nigerian Autonomous Foreign Exchange Market. However, Cordros Capital Limited reports that it increased by 1.1% to N1,655.74 per dollar in the Electronic Foreign Exchange Matching System (EFEMS).
In the interbank electronic FX market, trades ranged between N1,585 and N1,678 per dollar, reflecting increased activity due to the introduction of the automated BMatch system on December 2. Analysts noted that the platform enhances transparency and reduces volatility in currency trading.
Market confidence was bolstered by sufficient dollar liquidity and the country’s external reserves, which stand at over $40.2 billion. The recent Eurobond auction, which raised $2.2 billion, was oversubscribed by $9 billion, highlighting strong investor interest.
In the parallel market, the naira appreciated to N1,720 per dollar, gaining N10 from the previous day as year-end demand eased. Diaspora remittances are also helping boost FX liquidity in this segment.
Global Commodities
Oil prices edged higher, with Brent crude trading at $72.93 per barrel and WTI at $69.18, as investors awaited the outcome of an OPEC+ meeting.
Strong U.S. labour market statistics caused gold prices to marginally decline, while a declining dollar and declining Treasury yields provided support. As investors anticipated additional economic data to determine the Federal Reserve’s interest rate trajectory, gold was trading at $2,641.53 an ounce.
