On Monday the value of the Nigerian Naira strengthened against the U.S dollar at both the parallel market and the Investors’ & Exporters’ Window (I & E Window). However, naira value dropped against the British pound and Euro.
The naira continues to fight an almost lost battle for its value, as the Central Bank of Nigeria (CBN) seems to remain adamant over unification of the exchange rates. Naira has lost so much value following the crash in oil prices which is the main source of the nation’s foreign exchange in addition to decline in remittances into Nigeria.
At the parallel market; Naira appreciated by N2.00 to close at N473.00 per dollar on Monday as the reopened for business after holidays. The value of the Naira had remained unchanged at N475.00 per dollar since Monday 27 July according to abokiFX.
On the other hand, naira exchange rate against the British pound stood at N590 per GBP at the parallel market after naira value lost N5.00 against the British currency. Similarly, naira exchanged at higher rate against the Euro at N542.00 per Euro, N2.00 higher than it did on the last trading day.
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At the I & E Window; naira value strengthened against the dollar as the turnover declined, according to the data from FMDQ. Naira closed at the rate of N388.00 per dollar at the window, N.1.25 (0.32%) appreciation compared to N389.25 it closed on the last trading day.
This rise in value at the close of trading emphasis the strong value displayed by the naira at the indicative opening rate of N388.33 per dollar, a N0.28 increase in value compared to the indicative opening rate of N388.61 per dollar on Wednesday, the last trading day.
The appreciation of the naira at the I & E Window follows a 9.29% decline in turnover to $17.23 million from $18.83 million recorded on Wednesday.
High and low exchange rates of the naira at the I & E Window on Monday were N390.00 and N380 per dollar respectively.
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The CBN official rate for the naira stood at N381.00 per dollar at FMDQ. However, the official rate quoted on the CBN website remains at N360.00 per dollar.
Brent crude is trading at $43.82 per barrel at the time of this report while Nigeria banner oil, Bonny light closed at $43.88 per barrel.
Past Events
In it’s effort to avert a free fall in the value of Naira, the Central Bank of Nigeria (CBN) in March “technically devalued Naira” and also maintained it’s forex intervention in the foreign exchange market.
The technical devaluation saw the I & E Window rate move from N360/$1 to N380.2/$1 while the official exchange rate moved from N306/$1 to N360/$1.
The central bank last month said it will work towards the gradual unification of exchange rates across all forex windows.
Central bank of Nigeria (CBN) announcement that it has added maize/corn to list of items excluded from official forex market.
Written by;
Ifunanya Ikueze
