The foreign exchange daily transaction increased by 14.62 percent to $14.27 million on Monday from $12.45 million recorded on Thursday last week at the Investors and Exporters (I&E) forex window.
What this means is that some exporters came into the market to sell their proceeds while some investors repatriated their funds. In order words, forces and demand played out in the market.
Godwin Emefiele, Governor, Central Bank of Nigeria (CBN), on May 10, 2020 assured investors of the security of their investments in the country despite dwindling revenue from the sale of crude oil globally.
However, he said investors interested in repatriating their funds from the country were guaranteed to get their money, notwithstanding the drop in the revenue from crude oil. He noted that the Bank had put in place policies to ensure an orderly exit for those that might be interested in doing so.
Naira weakened by N0.75k as the dollar was quoted at N386.50k on Monday compare to N385.75k quoted on Thursday last week at the I&E window, data from the FMDQ indicated.
FX market at the Investors and Exporters (I&E) forex window opened with an indicative rate of N387.46k on Monday morning from N387.50k opened with on Thursday.
This represents a marginal appreciation of N0.04k to Nigeria’s currency according to the data obtained from the FMDQ.
The foreign exchange market opened on Monday with Naira weakening by N2.00k as the dollar was trading at N450 as against N448 on Friday last week on the black market.
One of the traders said there was a little increase in the demand for the greenback by the end users.
The local currency is expected to regain its value against the dollar in the coming weeks in anticipation of dollar sales to Bureau De Change (BDC) operators by the Central Bank of Nigeria (CBN).
The CBN said on April 29, 2020 that it has made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume.
The Federal Government on June 1, 2020 announced that airlines would resume operations on June 21.
The Apex bank on April 29 2020, resumed dollar sales for school fees and Small and Medium Enterprises (SMEs) and directed users to access FX from the banks.
At the retail bureau, naira remained unchanged at N450 to the dollar. Also the local currency has been stable at N361.00k/$ at the official window.
