Naira stable across FX markets as oil drops

Naira stable across FX markets as oil drops below $70


The Naira remained stable against the US Dollar on Monday in all areas of the foreign exchange (forex) market.

Data from FMDQ Securities Exchange showed the Investors and Exporters (I&E) window, maintained the exchange rate against the dollars at N411.50/$1, the same rate it closed on Friday last week

This happened as the value of transactions at the window on Monday stood at $166.06 million, 11.8 percent or $22.2 million lower than the previous session’s turnover of $188.26 million.

The same outcome was recorded at the parallel market as Naira closed Monday trade at N510/$1 same rate from Friday, data from abokifx shows.

Although the Naira rose to N508/$ during Monday’s afternoon session, the rise was not sustained.

Also, the domestic currency traded flat against the Pound Sterling at the parallel market yesterday at N705/£1 but appreciated by N2 to close at N596/€1 compared with N598/€1 it traded at the previous session.

Meanwhile, the price of crude oil dropped below $70 per barrel on Monday at the international oil market as China, the world’s biggest oil importer tightened travel restrictions to combat what it considers to be the worst epidemic since the Wuhan virus.

Data obtained from Bloomberg shows the Brent crude price traded at $69.24 per barrel after losing $1.41 or 1.99 percent, while the United States West Texas Intermediate (WTI) recorded a $1.44 or 2.11 percent loss to trade at $66.64 per barrel.