Naira Jumps on Improve FX Balance at I&E Window

Naira Jumps on Improve FX Balance at I&E Window

The Nigerian naira spot rate closed healthier on Monday at the investors’ and exporters’ foreign exchange (fx) window after the local currency weight declined against the United States (US) dollar at the weekend.

FMDQ Exchange quotes showed that the naira was exchanged for N768.17 per the US dollar at the investors and exporters window, appreciated by 0.26 percent; compared with N770.17 for which it traded or exchanged for the greenbak at the close of business on Friday.

There have been near convergence in exchange rates across the markets. The fx market trend give players hope of a rather quick result in the move to unify rates. Nigerian banks are already asking domicilliary account holders they can now convert their balance to local currency at the ongoing rate.

At the Investors and Exporters FX window, local currency traders reported that the open indicative rate closed at N750.83 to the US dollar. Meanwhile, an exchange rate of N840 to the greenback was the highest rate recorded within the day’s trading, before settling at N768.17.

FX report showed that the naira sold for as low as N465 to the dollar within the day’s trading. A total of 198.13 million dollars was traded at the official investors and exporters window on Monday

On the flip side, according to market data, the parallel market experienced a depreciation, with the naira falling 0.39% to N773 from N770. Deposit money banks announced that depositors can now convert their US dollar in the domiciliary account to naira as rates are converging.

Furthermore, the 1-month and 3-month forward rates concluded at lower levels of N765.58 and 785.64, respectively, indicating minor losses, Cowry Asset Management said in a note. In contrast, traders stated that the 1-year forward rates displayed strength, gaining N7.96 to close at N870.78. Naira Jumps on Improve FX Balance at I&E Window

Price of Cooking Gas Declines in May, Says NBS