Naira-Dollar Exchange Rates Gap Widens Across Multiple FX Windows

The gap between the exchange rate of the Naira at the official market and the parallel market widened further on Tuesday, November 12 as it stretched to N34.68 triggered by the US Dollar continued strength in the global market.

This is as the Naira weakened for yet another session to N1,689.88 per Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) as it fell by N8.64 or 0.5 per cent to close at N1,689.88/$1 compared with Monday’s closing rate of N1,681.42/$1.

The Naira lost further at the black market, losing N13.29 against the American currency to close at N1,724.56 to the US Dollar compared to N1,711.27/$1 it closed on Friday.

The daily supply of FX as measured by secondary data from FMDQ Securities Exchange Limited indicated that turnover slumped by $365.06 million or 77.4 per cent to $106.44 million from $471.50 million.

Slowing injection of FX into the market has pressured the market while generally, the US currency continues to strengthen with the re-emergence of Mr Donald Trump as the next US president.

This move has made the Dollar stronger and weakened against a host of other currencies, like the Naira.

Also, the Naira weakened in its value against the Pound Sterling in the official market by N21.70 to sell at N2,164.74/£1 compared with the preceding session’s N2,143.04/£1.

It closed south by N11.20 against the Euro in the session to trade at the rate of N1,793.43/€1 versus N1,782.23/€1

In the parallel market, daily trading data showed that the local currency also weakened against the Pound Sterling and the Canadian Dollar but strengthened against the Euro.

On the Pound, there was a fall of N2.21 to wrap the session at N2,213.71/£1 from N2,211.50/£1 and against the Canadian Dollar, it depreciated further by N4.26 to close at N1,235.60 per Canadian Dollar, compared to N1,231.34 per CAD in the recent session

Against the Euro, the Naira quoted at N1,837.31/€1 versus the previous day’s rate of N1,843.72/€1 as it added N6.41.