Naira maintains steady gain at black market

Wednesday, 4th August 2021:  The exchange rate between the naira and the US dollar closed at N411.50/$1 at the official Investors and Exporters window.

Naira remained stable against the US dollar to close at N411.50/$1 on Wednesday, the same rate when compared to N411.50/$1 recorded on the previous day.

Also, naira appreciated at the parallel market to close at N506/$1, having traded at N508/$1 the previous day. This represents a N2 gain when compared to the previous day’s rate.

The strengthening of the naira at the black market appears to have continued as the official window maintains stability with a 10.2% rise in dollar supply.

Normalcy appears to be returning to the forex market 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 remained stable against the US dollar at the Investors and Exporters window on Wednesday to close at N411.50/$1, this was the same rate when compared to N411.50/$1 recorded on Tuesday.

The opening indicative rate closed at N411.34/$1 on Wednesday, 4th August 2021, this represents a 16 kobo gain when compared to the N411.50/$1 that it closed at on Tuesday, 3rd August 2021.

An exchange rate of N413 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.50/$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 rose by 10.2% on Wednesday, 4th August 2021.

According to data tracked by Nairametrics from the FMDQ, forex turnover increased from $115.17 million recorded on Tuesday, 3rd August 2021 to $126.92 million on Wednesday, August 4, 2021.

Credit: Nairametrics