Naira Rises as Cash Crunch Extends

Naira Rises as Cash Crunch Extends

The Nigerian naira was exchanged at N461.50 for a United States (US) dollar Wednesday as demand slowdown marginally at the Investors’ and Exporters’ foreign exchange (FX) window.

MarketForces Africa FX screener showed that the local currency was traded at the official window for manufacturers who engages in imports and exporting activities at N462 yesterday.

Likewise, the parallel market appreciated by 0.40% to N747 over weak US dollar demand by individuals and organisations – supported by an inability to get physical local currency.

Meanwhile, the Central Bank of Nigeria’s decision to obey the Supreme Court overruling the naira redesign policy has not solved the cash crunch pressures facing Nigerians.

Local banks are yet to revert to the pre-naira redesign policy period with large queues seen across the banking halls. Automated Teller Machines (ATMs) rarely work and Nigerians’ nightmare of accessing their bank deposit lingers.

According to data, the open indicative rate closed at N461.59 to the US dollar. An exchange rate of N544.50 to the dollar was the highest rate recorded within the day’s trading before it settled at N461.50.

The Naira sold for as low as N460 to the dollar within the day’s trading. A total of US$ 431.77 million was traded at the official Investors’ and Exporters’ window.

Amidst Nigeria’s FX crisis gingers by weak foreign investors in the economy, data from the CBN showed that gross foreign reserves still behind $36 billion as oil prices declined. Brent crude fell 0.25% to $75.13 per barrel, while WTI crude lost 0.16% to $69.56 per barrel.

Oil futures slipped on Wednesday as investors weighed the increased risk mood around the global banking sector against expectations surrounding the outcome of the FOMC meeting. #Naira Rises as Cash Crunch Extends

CBN Devalues Naira 12.95% despite Rising Foreign Reserves