Naira Steadies amidst Uneasy Forex Market Calm
In an uneasy forex marker calm, the Nigerian naira traded steadily against the United States (U.S) dollar at the investors and exporters window again as traders continue to digest different fx rates.
According to data from the FMDQ platform, the exchange rate remained at N464.67 to the dollar at the Investors and Exporters FX window.
Demand for the greenback was matched along with an equitable level of foreign currency in the market, keeping rates steady for the second day in a roll. Despite this, forex traders expect the naira to be devalued.
Though not desirable due to weak economic temperatures, a number of investment banking firms maintain that the local currency is still overvalued.
Last year, the Nigerian naira lost 10% of its valuation after the apex bank allowed a last-minute moderation at Investors’ and Exporters’ FX window.
Recent development in the FX market suggests the apex bank is unsettled about rates direction after it sold US dollar at higher rates to market participants at its auction sales.
Last week, the apex bank spot rate was adjusted to N630, suggesting a devaluation of the local currency. However, the monetary authority denies that the naira was devalued.
The development has seen both the demand and supply sides adjusting moderately as the volume of dollar transactions matched with FX liquidity currently available.
But data suggest the naira was sold for as much as N645 in the United States, according to a Reuters report. President Bola Tinubu had earlier hinted about the need to converge rates.
The local currency did not change from its value on Monday, while the open indicative rate closed at N464.96 to the dollar on Tuesday.
An exchange rate of N467 to the dollar was the highest rate recorded within the day’s trading before it settled at N464.67. The naira sold for as low as N460 to the dollar within the day’s trading.
According to data from the FMDQ Exchange platform, a total of 186.02 million dollars was traded at the official Investors’ and Exporters’ window on Tuesday. #Naira Steadies amidst Uneasy Forex Market Calm
