The value of the naira once again appreciated slightly to open at N413.74 per dollar on Monday.
This slight rise came after the currency closed at N415.10 on Friday. However, the FMDQ group reports that by the end of the day, the Naira had fallen back to N415.10 (the same rate at which it closed on Friday).
This return to Friday’s closing price temporarily dashes the hopes of an upward trajectory in the value of the Naira, although it represents an overall stability.
The FMDQ group also released the Spot rates and Forward rates from Monday, November 15. According to the group’s site, the Spot rate rose only as high as N404 per dollar, around which the Spot rate has been moving for the past week. The group reported that the Spot Rates fell as low as N453.75 per dollar on Monday.
For the forward rates, the currency traded as low as N453.75 per dollar, which was the same as the Spot rates. It then went on to trade only as high as N445.50 per dollar on Monday.
The FMDQ group also reported that the total turnover of the currency sat at $138.37 million dollars. This refers to the total value of the currency that was traded at the market throughout Monday.
At the parallel market, the Naira took a slight fall to go down N1 from N540 per dollar which it closed at on Friday to trade at N541 per dollar on Monday.
It has however been noted that while the Central Bank of Nigeria retains awareness of these parallel market (or black market) prices, it generally does not reckon with the prices.
The apex bank, as at November 15 2021, maintains stability in the value of the nation’s currency. The CBN reveals that the Naira trades at N411.34 (as at November 15), a figure around which the currency has been hovering for the last month.
As we approach the end of year and the highly anticipated Christmas period, the overall relative stability that the currency now faces is much better than an alternative which may cause the Naira to dip even further. This is also largely due to the actions of the CBN concerning dollar liquidity.
While the stability is a small improvement, the Naira still trades at a relatively high amount and still affects multiple parts of the country’s economy. Any steps which can lead to a high percentage of appreciation are highly encouraged.
