Naira gains further at official market despite decline in dollar supply

The exchange rate between the naira and the US dollar closed at N411.13/$1 indicating a further appreciation at the official Investors and Exporters window.

Naira gained against the US dollar on Monday, to close at N411.13/$1 compared to N411.5/$1 recorded at the close of trade on Friday, 6th September 2021, representing a 0.09% appreciation.

Meanwhile, the exchange rate depreciated further at the parallel market to close at N532/$1. This represents a record low compared to an average of N530 recorded in the previous trading session. The exchange rate has continuously depreciated in recent weeks, due to scarcity of forex and increased demand by importers at the black market.

Nigeria’s foreign reserves recorded a boost of $77.69 million on Friday, 3rd September to close at $34.26 billion, compared to $34.18 billion recorded a day before. The reserve position has gained $239.93 million so far in the month of September 2021.

Trading at the official NAFEX window

Exchange rate gained against the US dollar on Monday 6th September 2021 to close at N411.13 to a dollar, representing a 0.09% appreciation compared to N411.5/$1 recorded in the previous trading day.

Naira has now appreciated against the US dollar for three consecutive days.

The opening indicative rate closed at N411.82/$1, a 40 kobo depreciation compared to N411.42/$1 recorded on Friday, 3rd September 2021.

An exchange rate of N412.53 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.13/$1, while it sold for as low as N400.99/$1 during intra-day trading.

Meanwhile, forex turnover at the Investors and Exporters (I&E) window decreased by 23.5% on Monday 6th September 2021.

According to data tracked by Nairametrics from FMDQ, forex turnover dipped from $127.51 million recorded on Friday to $97.54 million on Monday 6th September 2021.

Credit: Nairametrics