Naira Rallies, Rates Tally Across FX Markets
The Nigerian local currency, the naira, rallied across the foreign exchange (FX) markets Tuesday as the decision to float wrecks forex market speculators and arbitrage activities in the economy.
Data from FMDQ Exchange showed that the local currency appreciated against the United States (US) dollar at the Investors and Exporters FX window, at a spot rate of N756.61.
The Central Bank of Nigeria’s (CBN) willing buyers and willing sellers model have wrecked speculative or arbitrage activities strongly to a point where exchange rates tally across FX markets tallied.
In the parallel market, the exchange rate improved to N756 per greenback from N755 on Monday at the beginning of the week.
The spot rates mean that the exchange rate moved in favour of the local currency by 1.79 percent compared with N770.38 per US dollar or the greenback on the previous day.
Maret traders said the open indicative rate closed at N701.75 to the greenback on Tuesday. Analysts said an exchange rate of N781 to the US dollar was the highest rate recorded within the day’s trading before it settled at N756.61.
The naira sold for as low as 465 to the US dollar within the day’s trading. Data from the market showed that a total of 134.47 million worth of US dollars was traded at the official Investors and Exporters window on Tuesday.
Elsewhere, the forward rate for one month contract declined by N19.18 to close at N735.98 per US dollar, 3-month depreciated by N19.63 to N758.43 and the 1-year forward rate fell by N21.76 to N841.77′ #Naira Rallies, Rates Tally Across FX Markets
