Naira Improves Against the US Dollar on I&E FX Window

Naira Gained 30 Kobo Against the US Dollar on I&E FX Window

Naira appreciated slightly on the Investors and Exporters’ foreign exchange window on Thursday, according to the FMDQ Group data.

The local currency opened the day at N386.67 to a US dollar before moderating to N385.70 per US dollar after sliding to as low as N389.75 for the day.

On Wednesday, the Naira traded at N386 to the US dollar, meaning the currency improved by 30 Kobo to N385.70 on Thursday.

This may not be unconnected to the surge in turnover for the day, the total turnover rose from $16.06 million on Wednesday to $66.61 million on Thursday.

While the Central Bank of Nigeria’s official exchange rate remains N360 to a US dollar, the rate at the black market depreciated by N2 from $453 it exchanged Thursday to N455 on Friday morning.

The Nigerian Naira was exchanged at N490 to Euro single currency on Thursday and Friday but lost N2 against the British Pound to N552 on the black market, down from the N550 it was exchanged on Wednesday after the poor inflation report.

Dollar liquidity remains an issue in Africa’s largest economy as revenue generation remains low, especially with global oil prices trading at record lows.

This, coupled with the latest production cuts agreement by OPEC plus member is expected to further hurt Nigeria’s fiscal buffer and also highlighted some of the reasons the central bank has refused to resume sales of forex to the bureau de exchange operators across the country.

Despite devaluing the nation’s currency earlier in March to curb rising forex demand and capital outflow the local currency continues to decline, forcing investors and economic experts to start adjusting their projection for additional devaluation stated in the MTEF report prepared by the ministry of finance.