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Naira Falls Against Dollar at Official Market

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  • Naira Falls Against Dollar at Official Market

The naira weakened for the second consecutive session on Tuesday after the Central Bank of Nigeria sold the United States dollar at its highest level ever on the official interbank market.

Traders said the CBN sold $1.5m at N305.75 per dollar. Commercial lenders then resold dollars at a 0.50 naira margin, leaving the naira at 306.25 at the close of the session, according to data from FMDQ OTC Securities Exchange.

The Federal Government unveiled a sweeping economic recovery plan last week that included the relaxing of foreign exchange restrictions with a view to achieving a market-determined regime. The central bank later said it would not allow the naira to float freely.

The naira was quoted at 453 per dollar on the black market on Tuesday, firmer than 455 per dollar its previous close, according to Reuters.

The CBN said on Tuesday it would sell $150m in currency forwards on the interbank market through commercial lenders.

The central bank, which has been intervening on the official currency market over the past two weeks, told lenders that Tuesday’s sale would be settled within 60 days.

The naira fell to 306 per dollar on Monday from the 305.50 level it had traded since last year after the central bank’s intervention on the spot market.

The currency fell to a record 520 per dollar in unofficial trading last month before strengthening to 460 this week, 32 per cent weaker than the official rate.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Naira

Naira Depreciates 2.4% Against US Dollar Despite Surge in Market Supply

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The Naira recorded a 2.4 percent depreciation against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday to close at N1,678.87 per Dollar despite a significant surge in supply volume in the official market.

At the previous session on Thursday, the Naira closed down at N1,639.50/$1, indicating a decrease of N39.37 at the approved market.

A turnover of $1.403 billion was on record at the market, according to data from the FMDQ Securities Exchange Limited. This indicated a $1.158 billion or 473.1 percent jump versus the $244.96 million quoted recently.

The surge in supply indicates that the Central Bank of Nigeria (CBN) issued guidelines to banks on implementing the free foreign exchange deposit window which gives banks the liberty to trade with the forex made available by scheme participants.

According to the document released this week titled “Guidelines On Implementation Of The Foreign Currency Disclosure, Deposit, Repatriation, And Investment Scheme, 2024,” the apex banks said commercial, merchant, and non-interest banks may trade with any deposited ITFC (Internationally Tradable Foreign Currencies) not immediately invested by a participant, provided that the funds would be made available to the participant when needed.

In a different trend, the domestic currency witnessed a flat outcome against the British currency and the Euro in the week’s closing session.

On the Pound Sterling, the local currency closed at N2,160.43/£1 and N1,796.61/€1 on the Euro.

In the parallel market, the local currency strengthened against the US Dollar, the Euro, and the Canadian Dollar but weakened against the Pound Sterling.

The Naira gained N12.89 against the American currency to close at N1,708.59 to the US Dollar compared to N1,721.48/$1 it closed on Thursday.

Against the Euro, the Naira quoted at N1,845.11/€1 versus the previous day’s rate of N1,848.28/€1 as it added N3.17 and against the Canadian Dollar, it appreciated by N7.77 to close at N1,224.09 per Canadian Dollar, compared to N1,231.86 per CAD in the recent session.

On the English currency, there was fall of 72 Kobo to wrap the final  session at N2,216.09/£1 from N2,215.37/£1.

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Naira

Naira Rises 2.5% on Dollar at Official Market, Slides at Parallel FX Market

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Naira Exchange Rates - Investors King

The Naira appreciated on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, November 7, as the local currency sold for N1,639.50/$1.

This happened as improved supply boosted the rate as the market faced heavy illiquidity.

At the official market, the domestic currency recorded a 2.51 per cent or N42.15 drop compared to the N1,681.65/$1 it was valued at the previous session on Wednesday.

This occurred as supply rose at the session as turnover published on the FMDQ Group website stood at $244.96 million indicating that the session’s turnover climbed by 24.5 per cent, indicating that there was an increase of 48.18 million compared to $196.78 million which was published the day (Wednesday).

Since the administration of President Bola Tinubu came into power, the Naira has fallen 72 percent. This is largley due to illiquidity in the FX market has led to volatile outcomes for the Naira despite the country recording high fixed-income yields and the local currency getting interventions from the Central Bank of Nigeria (CBN).

Also, the domestic currency witnessed gains against the British currency and the Euro in the week’s penultimate session.

On the Pound Sterling, the local currency made a rise of N8.94 to wrap the session at N2,160.43/£1 from N2,169.37/£1 that it sold at the previous session and against the Euro, the Nigerian currency closed at N1,796.61/€1 versus N1,819.86/€1, indicating an N23.25 appreciation.

In the parallel market, the local currency weakened further against the US Dollar and the Canadian Dollar but made gains against the Pound Sterling and  the Euro.

The Naira lost N5.75 against the greenback to close at N1,721.48 to the US Dollar compared to N1,715.73/$1 it closed on Wednesday.

Against the Canadian Dollar as it depreciated further by 63 Kobo to close at N1,231.86 per Canadian Dollar, compared to the midweek’s N1,231.23 per CAD.

On the English currency, there was rise of N4.42 to wrap the session at N2,215.37/£1 from N2,219.79/£1 and it appreciated N11.81 on the Euro to quote at N1,848.28/€1 versus the previous day’s rate of N1,860.09/€1.

 

 

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Naira

Naira Falls Across Multiple FX Windows as Trump Emergence Boost Dollar Value

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Naira Exchange Rates - Investors King

The Naira weakened to N1,681 per Dollar on Wednesday, November 6 in the official foreign exchange market, the Nigerian Autonomous Foreign Exchange Market (NAFEX) as the American Dollar strengthened in the global market following the emergence of Donald Trump as the US president.

The local currency fell by N10.33 or 0.61 percent to close at N1,681.65/$1 compared with Tuesday’s closing rate of N1,671.32/$1.

The daily supply of FX as measured by secondary data from FMDQ Securities Exchange Limited indicated that turnover slumped by $21.99 million or 10.1 percent to $196.78 million from $218.77 million.

The decline in supply comes as the Central Bank of Nigeria (CBN) limited the sale of forex in order to regulate cash sales in the FX market to ensure stability and compliance.

Also, the emergence of Donald Trump as the next US president made the Dollar stronger and weakened a host of other currencies, like the Naira.

The market will be looking forward to Trump’s potential policies and what it would mean for the global economy.

However, the Naira weakened in its value against the Pound Sterling in the official market by N8.74 to sell at N2,169.37/£1 compared with the preceding session’s N2,160.63/£1.

It closed flat against the Euro in the midweek to trade at the rate of N1,819.86/€1.

The local currency also weakened across the Dollar, Pound Sterling, and the Canadian Dollar in the black market.

The Naira lost N7.38 against the greenback to close at N1,715.73 to the US Dollar compared to N1,708.35/$1 it closed on Tuesday.

The Naira lost N3.33 to sell at N2,219.79/£1 compared with the preceding session’s N2,216.46/£1 and against the Canadian Dollar as it depreciated further by N6.61 to close at N1,231.23 per Canadian Dollar, compared to Tuesday’s N1,224.62 per CAD.

However, it followed a different pattern against the Euro as it appreciated N4.48 to quote at N1,860.09/€1 versus the previous day’s rate of N1,864.57/€1 and it extended losses

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