Naira Again Closes at N415 at Official FX Window

The Naira once again closed out at N415.10 per dollar on Tuesday, a figure at which it closed on both Friday November 12 and Monday November 15.

After making a marginal increase to open at N414.55 per dollar on Tuesday, the Naira made another unspectacular return to a price at which it had closed consistently for two straight days, according to the FMDQ group.

This further reinforces that the currency seems to have found momentary stability at that price level. The N414 at which it opened on Tuesday is a slight decline from what it opened at on Monday, but the closing prices remain consistent.

The Investors and Exporters Window where the Naira is traded at officially reports the Spot and Forward rates. The Spot rate hit a usual high of N404 per dollar, falling up to N444 per dollar. The Forward rates were also released, with the Forward rates rising up to N411 per dollar and falling up to N453 per dollar.

The total amount of the dollar that was traded on Tuesday amounts to $62.53 million, lower than the total of $138.73 million which it recorded by the close of the previous day.

At the parallel market, the Naira still trades between N535 per dollar and N540 per dollar. This is according to sources based at the Bureau de Change (BDC). The Central Bank of Nigeria maintains it stance on the parallel market, refusing to recognize it and encouraging individuals who are interested in engaging Foreign Exchange to instead approach their respective banks.

From a general perspective, stability of the Nigerian currency is good and should be desired. However, questions should be raised as to whether the currency needs to be stable at the rate which it is now, or if it urgently needs a quick, exponential rise so as to boost the economy as fast as possible.