Naira records significant gain at official market despite 27.8% drop in dollar supply
The exchange rate between the naira and the US dollar closed at N410.80/$1 at the official Investors and Exporters window.
Naira appreciated against the US dollar to close at N410.80/$1 on Wednesday, representing a 0.21% gain when compared to the N411.67/$1 that was recorded the previous day.
However, the naira still remained stable at the parallel market to close at N515/$1 on Friday, August 13, 2021. This was the same rate that it traded the previous day.
The local currency closed the week stronger at the official market as it recorded its biggest gain in about a month despite falling at the black market during the week. Dollar supply dropped by 27.8% on Friday.
Trading at the official I&E window
Naira appreciated against the US dollar at the Investors and Exporters window on Friday to close at N410.80/$1. This represents an 87 kobo gain when compared to the N411.67/$1 that was recorded on Thursday, August 12, 2021.
The opening indicative rate closed at N411.27/$1 on Friday, 13th August 2021, representing a 56 kobo gain when compared to the N411.83/$1 that it closed at on Thursday, 12th August 2021.
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An exchange rate of N412.50 to a dollar was the highest rate recorded during intra-day trading, before it settled at N410.80/$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 27.8% on Friday, 13th August 2021.
According to data tracked by Nairametrics from the FMDQ, forex turnover declined from $150.99 million recorded on Thursday, 12th August 2021 to $109.03 million on Friday, August 13, 2021.
External reserve
Nigeria’s foreign reserve dropped marginally by $2 million on Thursday, 12th August 2021 to close at $33.584 billion compared to $33.586 billion recorded as of 11th August 2021.
Since the reserve started moving positively, it has gained over $490.1 million in 30 days, despite enduring a significant plunge in the previous months.
Recall that the Central Bank of Nigeria banned the sale of foreign exchange to Bureau De Change (BDC) operators in the country, due to reports of the operators’ illegal trading of the dollar, trading beyond the limit threshold of $5,000 and gradually dollarizing the Nigerian economy, according to the CBN governor.
