Naira Depreciates by N2.83 at Investors, Exporters FX Window
The Nigerian local currency, the naira, worsened further at Investor’s and Exporters’ foreign exchange (FX) window, dropping by N2.83 amidst a large spike in demand for foreign currencies (FCY).
At $37.52 billion, Nigeria’s external reserve is noted to be relatively strong as a buffer for supporting the local currency, according to data from the Central Bank of Nigeria (CBN) website.
However, the apex bank market intervention has proven to be insufficient to keep the local currency strong. Godwin Emefiele, the CBN Governor has insisted the local currency will not be devalued. READ: Naira Depreciates against U.S Dollar in FX Market
However, the Naira has lost weight across foreign exchange markets amidst rising demand for the United States dollar by locals for personal and business uses. Companies are reporting FX losses in their financial statements.
Most multinationals are still unable to repatriate funds abroad due to capital control measures. This has, however, reduced inflows of foreign currencies into Africa’s largest economy by gross domestic products.
Exiting the local economy has also proven to be difficult, though the CBN said players with genuine dollar needs will be able to access as much. Already, Nigerian banks have blocked online purchases for most transactions using debit cards.
Data obtained from the FMDQ Exchange platform shows that the Nigerian naira was sold to importers and manufacturers at the official window at N444.50, demand driven depreciation of 0.64% from N441.67 on Wednesday.
Market data indicates that the open indicative rate was N441.25 to the dollar on Thursday. An exchange rate of N450.06 to the dollar was the highest rate recorded within the day’s trading before it settled at N444.50.
The Naira sold for as low as N425 to the dollar within the day’s trading. A total of 100.90 million dollars was traded at the official Investors and Exporters window on Thursday. #Naira Depreciates by N2.83 at Investors, Exporters FX Window