Naira Appreciates Against Dollar at Official FX Window

Naira Appreciates Against Dollar at Official FX Window

The Nigerian local currency appreciates against the United States dollar on Monday as the exchange rate settled at N416.33 at the Investors and Exporters foreign exchange window. Naira has been trading steady after the local currency reversed the last devaluation to N435 a dollar at the window.

At the parallel market, currencies traders sold the greenback for N570-575, according to channel checks conducted by MarketForces Africa in Lagos. Last week, the local currency witnessed moderate pressure across foreign exchange markets as analysts predict higher demand for the United States dollar in the pre-election year,

At the investors and exporters FX market, Naira gained 0.04 per cent as the dollar was quoted at ₦416.33 as against the last close of₦416.50 while the external reserve hold strong.

Nigeria’s external reserve has been hovering a little above the $40 billion mark amidst foreign currencies shortage in the foreign exchange market for eligible transactions. Though, accretion into the nation’s foreign reserve has weakened as Nigeria crude oil supply falls 50,000 barrels per day, according to official data.

Stanbic IBTC purchasing manager index report shows that private sector performance has continued to be impacted by FX losses. The weak local currency continued to have a negative run on listed companies’ earnings performance, according to their separate financial statements in the third quarter of 2021.

Due to Nigeria’s upcoming election, demand for foreign currencies has been projected to rise. Based on this expectation, some currency traders are projecting that the local currency could see an official devaluation while FX speculators spread could further widen.

Meanwhile, at the investors and exporters FX window on Monday, FSDH Capital said in a market note that most participants maintained bids between ₦408.00 and ₦444.00 per dollar. # Naira Appreciates Against Dollar at Official FX Window

Read Also: Naira Gains as Traders Reduce FX Exposure ahead of CBN Auction

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