NAIRA APPRECIATES AT FOREX MARKET AS DOLLAR SUPPLY INCREASES SIGNIFICANTLY BY 141%

 In Investor News

Monday, 12th July 2021: The exchange rate between the Naira and the US Dollar started the week on a positive note as it closed at N411.5/$1 at the official forex market. Naira appreciated against the US Dollar on Monday, closing at N411.5 to a Dollar, representing a 0.06% gain compared to N411.75/$1 recorded on Friday, 9th July 2021.

However, the Naira maintained stability at the parallel market to close at N505/$1, the same as recorded on Friday, 9th July 2020. Nigeria’s external reserve returned to declining ways after only two days of consecutive appreciation. It lost over $21 million on Friday, 9th July 2021.

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Monday to close at N411.5/$1 from N411.75/$1 recorded at the end of trade on Friday, 9th July 2021. The opening indicative rate also appreciated marginally from N411.29/$1 recorded on Friday to close at N411.25/$1 on Monday.

An exchange rate of N412.9 to a Dollar was the highest rate recorded during intra-day trading before it settled at N411.5/$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 increased significantly by 140.7% on Monday, 12th July 2021. According to data tracked by Nairametrics from FMDQ, forex turnover surged from $73.99 million recorded on Friday, 9th July 2021 to $178.13 million on Monday, 12th July 2021.

The forex reserve position continues to deplete despite crude oil price rally at the global crude oil market. So far in the month of July 2021, Nigeria’s reserve has lost a total of $223.77 million while its year-to-date loss stands at $2.27 billion.

It had appeared that the initial rise in the price of crude oil had begun to reflect in Nigeria’s reserve, however, it has reverted to its negative trend. Nigeria needs to boost its foreign reserves in order to meet up with pent-up obligations.

Read more at: https://nairametrics.com/2021/07/13/naira-appreciates-at-forex-market-as-dollar-supply-increases-significantly-by-141/

 

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