Naira Falls to N420 in Official FX Window

Naira Falls to N420 in Official FX Window

Naira falls to N420 per the United States dollar in the official foreign exchange (FX) window amidst uncertainties in the economic environment and demand pressures. Still, analysts believe the local currency has not found its true value and are expecting the naira to be devalued further.

But Central Bank of Nigeria (CBN) has maintained its stance not to depreciate the local currency. However, the apex bank has continued its market intervention which has failed to keep the naira strong against the greenback.

Naira has lost weight due to demand pressures for imports amidst a low inflow of foreign currencies into the country. Exports receipts from crude and non-oil have been unable to drive dollar income.

According to trading data from the FMDQ Exchange platform, in the Investors and Exporters window, the exchange rate depreciated by a 0.30 per cent, weaker than N418.75 traded on Wednesday.

Trading data shows that the open indicative rate closed at N416.50 to the dollar on Thursday. An exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N420.

The Naira sold for as low as 412.38 to the dollar within the day’s trading. Data tracked from FMDQ Exchange shows that a total of 160 million dollars was traded in foreign exchange at the official Investors and Exporters window on Thursday.

Currencies traders said an exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N420. However, the Nigerian local currency was sold for as low as 412.38 to the dollar within the day’s trading.

In terms of volume, a total of 160 million dollars was traded in foreign exchange at the official Investors and Exporters window on Thursday, according to trading data. ‘Naira Falls to N420 in Official FX Window

READ: Naira Sinks at Investors Window, Parallel FX Rates Worsen