Naira dips to ₦1,366 as FX turnover, interbank deals rise

The Naira dropped against the US Dollar in the Nigerian Foreign Exchange Market (NFEM) on Tuesday due to increased demand for foreign payments.

While sharp FX interventions have slowed, leading to local currency fluctuations, market analysts maintain a positive exchange rate outlook for the year.

The Apex Bank defended the Naira with $150 million in April, an 83% decrease from the amount injected into the official window in March. This reduction comes amid a sustained decline in the nation’s gross external reserves, which fell by approximately $1 billion to $48.3 billion.

In the official window on Tuesday, the Central Bank reported that the Naira settled at ₦1,366.56 per dollar, down from ₦1,365.25 the previous day.

Further details revealed a sharp increase in interbank foreign exchange activity, which drove liquidity levels in the official window. Interbank FX turnover surged to $71.59 million across 99 deals, up from the $59.93 million reported previously.