Naira Stages Recovery as FX Demand Pressures Ease

Naira Stages Recovery as FX Demand Pressures Ease

Naira holds sway against major foreign currencies including the United States dollar on Monday, exchanges at N441.25 per greenback at the investors and exporters foreign exchange (FX) window.

The figure represented an increase of 0.03 per cent compared with the N441.38 it exchanged for the dollar before the close of business on Friday, according to data from FMDQ Exchange tracked by MarketForces Africa.

The open indicative rate closed at N439.63 to the dollar on Monday. An exchange rate of N442.50 to the dollar was the highest rate recorded within the day’s trading before it settled at N441.25.

The Naira sold for as low as N425 to the dollar within the day’s trading. A total of 46.21 million was traded in foreign exchange at the official investors and exporters window on Monday. READ:NGX Return Hits 24.4% as Investors Raise Stakes

Last week, the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate traded within the range of N414-N461 but closed at N441.4. This translates to a depreciation of -0.5% or N2.2 week on week.

In the forwards market, the FX rate traded within the range of N442-N469.9 per dollar. In the 1-month contract, the naira depreciated by -0.5% week on week to close at N448.3 and in the 3-month contract, the exchange rate depreciated by -0.7% to close at N455.4.

In the retail secondary market intervention sales (SMIS) market, the FX spot rate remained unchanged week on week to close at N430 per the United States.

Therefore, the gap between the NAFEX and parallel market rate inched higher to 65.6%. According to data from FMDQ, NAFEX turnover decreased by 31% or $30.5 million week on week to $69.2 million on Friday. 

Nigeria’s external reserves declined by -0.4% or $165.6 million to $37.9 billion as of Friday’s close, according to data from the Central bank of Nigeria.

# Naira Stages Recovery as FX Demand Pressures Ease#

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