Naira Rises as FX Transactions Settle at $64m

Naira Rises as FX Transactions Settle at $64m

The Nigerian naira rose marginally as foreign exchange (FX) transactions volume settled at about $64 million on Tuesday at the Investors and exporters window amidst a forex shortage in the economy.

Data from the FMDQ OTC FX platform showed that the local currency appreciated against the US dollar as it exchanged at N744.97, though the exchange rate worsened at the parallel market.

The naira gained 0.39 per cent compared to the N747.87 it exchanged for the US dollar on Monday, separate FX traders, and analysts said late at night on Tuesday ahead of the presidential election tribunal ruling on Wednesday.

The open indicative rate closed at N774.99 to the dollar on Tuesday. Market data showed that the spot exchange rate of N799.83 for the greenback was the highest rate recorded within the day’s trading before it settled at N744.97.

According to data obtained from the FX market, the naira sold for as low as N588 to the dollar within the day’s trading. On the volume of US dollars transacted, FX data showed that a total of 63.60 million dollars was traded at the investors and exporters window on Tuesday.

In its financial market report, FMDQ said spot FX market turnover was ₦3.61 trillion or $4.66 billion in July 2023, representing a month-on-month decrease of 24.34% or ₦1.16 trillion from the turnover of ₦4.77 trillion recorded in June 2023

In the FX Market, the US Dollar appreciated against the Naira, with the spot exchange rate increasing by 22.94% (₦143.60) to close at an average of ₦769.51 in July 2023 from ₦625.90 recorded in June 2023.

Further, exchange rate volatility decreased in July 2023 as the Naira traded within an exchange rate range of ₦740.08 -₦803.90 compared to ₦464.67 – ₦770.38 recorded in June 2023.

While the US dollar rallied further on Tuesday, the euro could weaken against sterling if the European Central Bank holds interest rates at the Sept. 14 meeting, says Rabobank senior FX strategist Jane Foley in a note. Naira Gains as CBN Limits Tenure of Banks Chiefs