The naira has taken a slight fall against the dollar, going down to N415.10 per dollar from the N414.73 at which it traded on Thursday.
According to the FMDQ group, the naira opened at N414.39 per dollar on Friday which was an increase of 34 kobo from the N414.73 at which it closed on Thursday. However, the naira had fallen to N415.10 by the end of the day. For a few days now, the FMDQ group has been reporting the naira hovering around N413 – N415 per dollar. While the value of the naira is not fixed on one particular number, it can still be said that the currency is beginning to gain stability at that range of prices (N413 – N415).
The Spot rate and the Forward rate for all business transactions on Friday were also updated on the FMDQ group website. On Friday, the Spot rate rose to as high as N404 per dollar, a N1 increase from the N405 per dollar which was its highest on Thursday. However, the Spot rate maintained its lowest value, falling to as low as N444 per dollar (same as Wednesday and Thursday).
There were however changes in the Forward rate. The Forward rate rose to as high as N430 per dollar, a N6 rise from the N436 per dollar at which it sat on Thursday. However, its lowest value took a slight fall as it went back to N453 per dollar from the N452 per dollar which it reached on Thursday.
The naira however took a plunge at the parallel market, dropping to N540 per dollar from the two-month high of N530 per dollar which it had recorded on Thursday. While it fell from Thursday, the news still bodes well for the currency as it is still a N30 increase from the N570 per dollar which it had previously been trading at consistently.
Overall, the naira is experiencing a gradual rise against the dollar. While the rates are still low for the economy, they are better than the rates which we saw the previous week.
Exchange Rate: Dollar to Naira Today, Friday 3 December 2021
The Nigerian Naira remained under pressure across the board despite efforts by the Central Bank of Nigeria (CBN) to prop up the value of the local currency against its global counterparts.
Backed by Nigeria’s foreign reserves, Naira plunged from N306 against the United States Dollar to N414 at the official forex window during the peak of COVID-19 when crude oil dropped to $15 a barrel and eroded Nigeria’s foreign exchange earnings.
Since then, Africa’s largest economy has instituted various forex policies to support the Naira, deepen economic productivity and generally grow activity across key sectors. However, the lack of a stable foreign exchange market has impeded capital importation needed to prop up Naira value as foreign investors continue to stay off the Nigerian market according to the World Bank.
Naira to Dollar Exchange Rate Official Fx Window (FMDQ)
On Thursday, December 2, 2021, the Nigerian Naira opened at N413.94 against the United States Dollar at the Official Forex Window managed by the FMDQ Group.
The local currency sheds 0.06 percent to a greenback by the close of business on Thursday, closing at N414.80 to a United States Dollar.
Analysing the forex spot market, Naira rose to as high as N404 against the American Dollar during the trading house of Thursday before plunging to N444. Trading activity dropped on Thursday as investors traded $139.69 million US dollars, in contrast to $223.8 million transacted on Wednesday.
Naira Black Market Exchange Rates
At the unregulated forex market, the Naira exchanged hoarders and speculators are exchanging the Naira at N558 to United States Dollar.
This was in spite of the CBN efforts at shutting down activity at that section of the forex market given its damages to the nation’s forex market and the fact that Nigerians were almost adopting the black market rate as the official rate.
Experts, including the Vice President, Yemi Osinbajo have blamed the Central Bank of Nigeria for existing of the black market. According to the Vice President, as long as the forex arbitrage exists due to the numerous forex rates, speculators, hoarders and other forex traders will continue to sustain the unregulated black market.
Central Bank of Nigeria’s Official Naira Rates
The CBN quoted rates are the rates the apex bank sells various currencies to Deposit Money Banks (DMBs) in Nigeria. The DMBs are however expected to add between N1 to N2 on each rate to cover costs when selling to customers.
|12/1/2021||SOUTH AFRICAN RAND||25.936||25.9993||26.0626|
Nigerian Naira (NGX) to Bitcoin (BTC)
Bitcoin, the world’s most dominant cryptocurrency, lost 0.13 percent against the Naira to N23.299 million or $56,833 in the last 24 hours.
Against Ethereum (ether), the second most capitalised cryptocurrency, the Naira gained 0.15 percent to N1.874 million.
GTBank Naira Exchange Rates
As of December 2, 2021, GTBank exchanged the Naira to the US Dollar at N480. While the Euro, the Canadian Dollar and the Great Britain Pound were traded at N549, N366 and N649, respectively since August 20, 2021. See other Naira exchange rates below.
Access Bank Naira Exchange Rates
Sterling Bank Naira Exchange Rates
Union Bank Naira Exchange Rates
UBA Naira Exchange Rates
Naira Sees Stability at Official Window
The Naira has this week witnessed a steady, unchanged value against the naira as it closed at N415.07 against the dollar on Wednesday (for the fourth straight day), according to the Investors and Exporters window where the Nigerian currency is traded officially.
As mentioned in a previous article, the Naira appears to have found a resting place for its value heading into the festive period. Even though the Naira is now stable, the value may still be too negative for the Nigerian economy, as food prices and prices for other goods keep going on the rise.
The FMDQ group through its website gives updates concerning the currency’s daily trading (opening and closing prices). It also gives updates on the Spot rate and Forward rate; the prices at which the currency trades for transactions throughout that day as well as future transactions which were agreed on that day.
The Spot rate maintained its usual highest value of N404 per dollar, but its lowest value fell as far as N457.02 per dollar. This is considerably lower than the N444 per dollar which it usually attains.
The Forward rate has however seen changes in value, dropping to a high of only N445.97 per dollar, maintaining its lowest price of N457 per dollar.
The FMDQ group also reports the total turnover of the currency in a day, i.e. the total amount of the currency that was traded throughout that day. On Wednesday, it was revealed that the total amount of the dollar that was traded sat at $223.8 million at the close of the day. This is higher than the $152 million which was recorded the previous day.
At the parallel market (which is not recognized by the Central Bank of Nigeria), the Naira was sold at a price of N558 per dollar as it looks to maintain the recovery which it made after hitting an all time low of N575 per dollar in September.
Naira Stabilizes at N415/$1 at Official Fx Window
The Nigerian currency has continued its trend of closing at N415 per dollar, after it settled to close at that price (which it has closed at consistently since Friday) on Tuesday. This is according to data gathered from the Investors and Exporters window where the Naira is traded officially.
It seems to appear that the Naira has found its resting place at this price, considering the number of days at which it has closed at that particular price. It is now left to see how this currency will trade closer to the festive period.
However, this ‘stability’ cannot be held as a permanent thing, because for this price to be the new normal, it may have to be maintained over a longer period of time. The Central Bank of Nigeria should be making moves to bring the value of the naira back up again, to make things better for Nigerians and Nigeria especially as we approach the Christmas period.
The FMDQ group’s updates of the Spot and Forward exchange rates showed slight changes here and there, with nothing too heavy. The Spot rate did not see any changes from Monday, as it maintained the high of N405 per dollar and a low of N465.97 per dollar.
The Forward rate however witnessed a jump, with Tuesday’s high jumping back to N411 per dollar from N452 per dollar where it sat on Monday. The lowest of the Forward rate further fell to N457 per dollar from the N453 per dollar where it was on Monday.
Those who would benefit the most from Tuesday’s trading round are those who agreed on future deals at prices between N411 and N415 per dollar.
The daily turnover recorded by the FMDQ group on Tuesday sat at $152.98 million, more than $100 million less than the $256 million which Monday recorded.
On Tuesday, the parallel market saw the Naira trade at N565 per dollar. The Central Bank has however stated that it does not reckon with the parallel market.
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