Naira Tumbles to N424.88 at Investors & Exporters Window
The Nigerian naira loses value at the official foreign exchange (FX) window on Wednesday, losing N3.88 on each dollar at the same time when the local currency faces demand pressures in the parallel market.
In the investors and exporters’ foreign exchange market, the naira failed to hold strong against the United States dollar, exchanging at N424.88 against N421.00 traded on Tuesday, a 0.80 per cent depreciation.
The open indicative rate closed at N421.80 to the dollar on Wednesday. An exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N424.88. READ: FX Spread Widens after Banks Cut Debit Card Spending
The naira sold for as low as N410 to the dollar within the day’s trading. Data from FMDQ Exchange shows that a total of 112.83 million dollars was traded in foreign exchange at the official Investors and Exporters window on Wednesday.
The Naira closed at an average of N615 today in the parallel market, thus widening the gap between the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) and parallel market rates to more than 45%. According to data from FMDQ, NAFEX turnover increased by 75.5% or $70.1 million last week to $162.9 million on Friday over an inflow of $536.3 million.
Of the sum, analysts said the CBN accounted for 11.1%, foreign portfolio investors (FPIs) accounted for 8.0%, non-bank corporates accounted for 12.3%, exporters accounted for 67.2% and others accounted for 1.4%. In a market report, Coronation Research said the improved contribution of exporters can be attributed to the CBN’s RT200 FX rebate program.
The CBN program affords exporters with non-oil export proceeds sold to Authorised Dealers and Banks (ADBs) for third-party use through the NAFEX window to get a rebate of N65 for every US dollar and N35 for every US dollar repatriated and sold into the I&E window for own use on eligible transactions.
The payment of the incentive will be made on a quarterly basis, according to the CBN RT200 FX detail. The apex bank has released N3.5 billion to 150 exporters as FX rebate under the program. # Naira Tumbles to N424.88 at Investors & Exporters Window
