Naira depreciates further at black market, trades at N535/$1

Wednesday, 8th September 2021: The exchange rate between the naira and the US dollar closed at N411.5/$1, at the Investors and Exporters window, where forex is traded officially. 

Naira depreciated against the US dollar on Wednesday, to close at N411.5/$1 compared to N410.67/$1 recorded at the close of trade on Tuesday, 7th September 2021, representing a 0.2% fall. 

Similarly, the exchange rate depreciated to a new record low at the parallel market to close at N535/$1. This represents a 0.56% fall compared to N532/$1 recorded as of Tuesday, 7th September 2021. The persistent fall of the exchange rate at the parallel market has been attributed to demand pressure from Investors who couldn’t obtain forex from the banks. 

Nigeria’s foreign reserves recorded a further boost of $98.58 million on Tuesday, 7th September to close at $34.59 billion, compared to $34.49 billion recorded a day before. The reserve position has gained $579.1 million so far in the month of September 2021. 

Trading at the official NAFEX window 

Exchange rate depreciated against the US dollar on Wednesday 8th September 2021 to close at N411.5 to a dollar, representing a 0.2% fall compared to N410.67/$1 recorded in the previous trading day.  

• The opening indicative rate closed at N411.58/$1, a 51 kobo depreciation compared to N411.07/$1 recorded on Tuesday, 7th September 2021. 
• An exchange rate of N412.16 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.5/$1, while it sold for as low as N400/$1 during intra-day trading. 
• Meanwhile, forex turnover at the Investors and Exporters (I&E) window increased by 130.6% on Wednesday 8th September 2021. 
• According to data tracked by Nairametrics from FMDQ, forex turnover grew from $128.11 million recorded on Tuesday to $295.39 million on Wednesday 8th September 2021. 

Credit: Nairametrics