Naira falls at black market as dollar supply drops by 18.14%

Thursday, 5th August 2021:  The exchange rate between the naira and the US dollar closed at N411.25/$1 at the official Investors and Exporters window.

Naira appreciated against the US dollar to close at N411.25/$1 on Thursday, representing a 0.06% gain when compared to N411.50/$1 recorded on the previous day.

However, naira depreciated at the parallel market to close at N508/$1 on Thursday, August 5, 2021, having traded at N506/$1 the previous day. This represents a N2 drop when compared to the previous day’s rate.

The local currency weakened at the black market as dollar supply dropped by 18.14%.

The forex market appears to be stabilizing after the initial panic due to the CBN’s decision to stop allocating foreign exchange to Bureau De Change (BDC) operators.

Trading at the official I&E window

Naira appreciated against the US dollar at the Investors and Exporters window on Thursday to close at N411.25/$1, this represents a 25 kobo gain when compared to N411.50/$1 recorded on Wednesday.

The opening indicative rate closed at N411.40/$1 on Thursday, 5th August 2021, this represents a 6 kobo drop when compared to the N411.34/$1 that it closed at on Wednesday, 4th August 2021.

An exchange rate of N413 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.25/$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 dropped by 18.14% on Thursday, 5th August 2021.

According to data tracked by Nairametrics from the FMDQ, forex turnover declined from $126.92 million recorded on Wednesday, 4th August 2021 to $103.90 million on Thursday, August 5, 2021.

Credit: Nairametrics