Interventions initiated by the Central Bank of Nigeria, CBN has helped Naira to appreciate against the dollar at the Investors and Exporters I&E window on Tuesday, closing at N393.83/$1.
The apex bank’s intervention forced prices further down while sustaining the appreciation recorded on the previous day of trading after the sharp depreciation recorded on the last trading day of 2020.
On January 5, 2020, the exchange rate between the naira and dollar closed at N393.83/$1, the second trading day of 2021 at the Investors and Exporters’ (NAFEX) window where forex is traded officially.
This is an appreciation from the N394.30 recorded on the previous trading day, January 4, 2021.
However, at the black market where forex traded unofficially, the exchange rate remained stable at N470/$1 on Tuesday, January 5, 2021.
The exchange rate at the parallel market closed at N470/$1 on the previous trading day January 4, 2021. It has been trading at N470/$1 since the 29th of December 2020.
The exchange rate disparity between the parallel market and the official market widened again to N76.17 representing a 16% devaluation differential.
The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Tuesday, closing at N393.83/$1 as against N394.30 reported on January 4, 2021.
This represents a 47 kobo gain when compared with that of the previous trading day.
The opening indicative rate was N394.63 to a dollar on Monday. This represents a N15.3 gain when compared to the N409.93 that was recorded on Monday, January 4, 2021.
The N411 to a dollar was the highest rate during intra-day trading before, it still closed at N393.83 to a dollar. It also sold for as low as N387.10/$1 during intra-day trading.
Forex turnover at the Investor and Exporters (I&E) window rose by 47.3% on Tuesday, January 5, 2021.
Forex turnover rose from $22.75 million on Monday, January 4, 2021, to $33.51 million on Tuesday, January 5, 2021.
The average daily forex sale for last week was about $169.93 million, which represents a huge increase from the $34.5 million that was recorded the previous week.
The exchange rate is still being affected by low oil prices, dollar scarcity, a backlog of forex demand, and a shaky economy that has been hit by the coronavirus pandemic.
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