The naira declined to N1538 in the Nigerian autonomous foreign exchange (FX) market (NAFEX), despite inflows from exporters. On Monday, the naira ended a five-day rally as renewed demand for US dollars caused a depreciation.
On BMatch, the Electronic Foreign Exchange Matching System (EFEMS), the naira appreciated 2.4% to N1,540.78 per US dollar. The hunt for the real worth of the Nigerian naira was reflected in the close proximity of the exchange rates on the FMDQ platform and BMatch.
Spot data from the FMDQ platform revealed a 0.23% depreciation, with the naira closing at N1,538 per US dollar in the official market. The local currency traded within a tight range, fluctuating between N1,524.50 and N1,554.00.
Despite this volatility, analysts noted that the naira received some support from US dollar sales by exporters, closing at N1,538.50. According to the National Bureau of Statistics, Nigeria’s exports surged past imports in Q3 2024, with exports growing by 17% to N20.5 trillion, while imports rose by 9% to N14.7 trillion. This resulted in a trade surplus of N5.8 trillion for Q3, marking the eighth consecutive quarter of trade surpluses.
The growing surplus signals Nigeria’s strengthening trade position and the positive impact of export-led growth strategies, as noted by Cowry Asset Limited.
Following news that China, the world’s largest oil importer, is mulling its first monetary policy easing since 2010 to spur economic growth, oil prices rose by almost 2% on the global commodities market. WTI was trading at $68.59 per barrel, while Brent crude was trading at $72.35 per barrel. In the meantime, gold prices increased as China began buying gold again after a six-month hiatus, which was expected to coincide with a rate cut at the next Federal Reserve meeting. The current price of one ounce of gold is about $2,678.20.
