Exchange Rate Now N742 as FX Transactions Slide to $42.6m

Exchange Rate Now N742 as FX Transactions Slide to $42.6m

The Nigerian naira exchange rate is now at N742 per the United States (US) dollar at the Investors and Exporters FX window as the total volume of foreign currency transactions slid to $42.6 million, data from the FMDQ platform showed.

Back into recovery mode again, the naira exchange rate appreciated to N742.10 at the Investors’ and Exporters’ window after a large loss sustained by the local currency across the markets on Monday.

The naira swings have been unstable due to the scarcity of foreign currency inflows into the economy. Foreign investors have remained on the sidelines, waiting for the monetary authority’s efforts to ensure there is enough FX liquidity in the market.

Last week, the Central Bank announced a plan to settle a $2.5 million forex backlog within, a move that some analysts attribute to declining external reserves. Data from the CBN showed that gross external reserves fell further yesterday to $33.293 billion.

Accretion into Nigeria’s foreign reserves has been limited despite higher crude oil prices in the global market, a surge that is supported by supply cuts by members of the Organisation of Petroleum Exporting Countries and allies (OPEC+)

At the investors’ and exporters’ FX window yesterday, the local currency gained by 4.06 per cent compared to the N773.50 it exchanged for against the US dollar on Monday. >> Naira Devaluation Deepens Economic Crisis in Nigeria

According to data from the market, the open indicative rate closed at N761.24 to the dollar on Tuesday. It was noted that a spot exchange rate of N807.15 to the US dollar was the highest rate recorded within the day’s trading before it settled at N742.10.

The naira sold for as low as N738 to the dollar within the day’s trading, according to market data. Overall, a total of 42.26 million dollars was traded at the investors and exporters window on Tuesday.

There was also a slowdown in FX demand in the open market. As a result, the parallel market rate was unchanged at N930.  Elsewhere, Brent crude oil price rose 1.63% to $92.12 per barrel as market consensus suggests that prices could cross $100 per barrel benchmark.

Market data showed that West Texas Intermediate (WTI) crude gained 1.59% to $88.68 per barrel.  Oil futures were up on Tuesday as traders digested optimistic global energy demand projections by OPEC despite rising interest rates. 

Gold prices, on the other hand, traded lower, with a 0.63% loss to $1,909 per ounce, limited by an uptick in the US dollar ahead of Wednesday’s US August consumer price index report.

#Exchange Rate Now N742 as FX Transactions Slide to $42.6m