Naira Hits N770.38, Ahead of Parallel Market Rate
Arbitrageurs and currency speculators in Nigeria’s forex market may be counting their losses as it becomes cheaper after a long donkey year to buy foreign currency in the open market where the US dollar and other currencies freely trade than at the official window as exchange rates diverge.
Market data showed that the Nigerian naira tumbled to N770.38 per United States (US) dollar at the Investors’ & Exporters’ foreign exchange (FX) window when parallel market rates improved.
This translates to a more than 16% daily decline in the value of the local currency at the official window for corporate, importers, and others.
After the exchange rate registered a significant appreciation on Friday, lost 16.19% from N663.04 at the approved forex market. Reversing the previous trend, the parallel market experienced an appreciation, rising by 0.26% to N758 from N760., removing the possibility of currency speculation in totality.
The open indicative rate closed at N703.50 to the dollar on Monday. An exchange rate of N799 to the dollar was the highest rate recorded within the day’s trading before it settled at N770.38.
The Naira sold for as low as N461 to the dollar within the day’s trading. On Monday, 78.03 million dollars were traded at the official Investors and Exporters window.
In its market brief, Cowry Asset Management Limited said 1-month and 1-year forward rates closed lower at N716.80 and 820.01, respectively, indicating losses of N18.59 and N29.39. However, the 3-month Dollar/Naira forward traded higher by N4.89 to N738.80.
Arbitrageurs and currency speculators in Nigeria’s forex market may be counting their losses as it becomes cheaper after a long donkey year to buy foreign currency in the open market where the US dollar and other currencies freely trade than at the official window as exchange rates diverge.
Market data showed that the Nigerian naira tumbled to N770.38 per United States (US) dollar at the Investors’ & Exporters’ foreign exchange (FX) window when parallel market rates improved.
This translates to a more than 16% daily decline in the value of the local currency at the official window for corporate, importers, and others.
After the exchange rate registered a significant appreciation on Friday, lost 16.19% from N663.04 at the approved forex market. Reversing the previous trend, the parallel market experienced an appreciation, rising by 0.26% to N758 from N760., removing the possibility of currency speculation in totality.
The open indicative rate closed at N703.50 to the dollar on Monday. An exchange rate of N799 to the dollar was the highest rate recorded within the day’s trading before it settled at N770.38.
The Naira sold for as low as N461 to the dollar within the day’s trading. On Monday, 78.03 million dollars were traded at the official Investors and Exporters window.
In its market brief, Cowry Asset Management Limited said 1-month and 1-year forward rates closed lower at N716.80 and 820.01, respectively, indicating losses of N18.59 and N29.39. However, the 3-month Dollar/Naira forward traded higher by N4.89 to N738.80. #Naira Hits N770.38, Ahead of Parallel Market Rate#
Banks Capital Unaffected by Naira Devaluation –Jibril Aku, Others
