Naira Gains 3.22%, CBN Sells FX at I&E Window
Nigerian naira strengthened against the United States (US) dollar’s dominance at the investors’ and exporters foreign exchange window. The local currency moved to reclaimed losses sustained due to stronger forex demand versus a moderate supply level in the market.
FMDQ Exchange fx quote showed that the United States dollar was sold to importers at N768.16 at the Central Bank of Nigeria’s organised FX market. This translates to a 3.22% daily gain in the FX market when compared with N793.70 for which it exchanged for the US dollar on Wednesday.
Traders said the open indicative rate closed at N787.13 to the dollar on Thursday. A spot exchange rate of N844 to the US dollar was the highest rate recorded within the day’s trading before it settled at N768.16.
According to Nigeria’s FX market update, the naira sold for as low as N700 to the dollar within the day’s trading. A total of 56.22 million dollars was traded at the investors and exporters window on Thursday
However, the Naira continued its downward trend in the parallel market, depreciating by 1.18% to N860 from N850 against the US dollar. Data from the CBN website showed that gross external reserves declined further amidst a sustained shortage of FX inflows.
Nigeria’s recently settled its 10-year Eurobond obligations that matured on July 12, 2022. As the naira continues to struggle, analysts task the apex bank to settle the FX backlog owed to foreign investors to attract US dollar inflows into the economy.
The apex bank has been selling foreign currency in a mild market intervention to protect the Naira every week since June 22, 2023, after a large devaluation to keep investors and exporters FX market wet.
Analysts at Cordros Capital Limited said in an update that as of mid-July, the apex bank has boosted the official window with a total sum of $96 million. # Naira Gains 3.22%, CBN Sells FX at I&E Window Nigerian Treasury Bills Yield Rises to 7%
