Nigeria’s currency on Monday appreciated by 0.16 percent against the dollar to N410.33k compared to N411.00k it closed on Friday at the Investors and Exporters (I&E) forex window.
The naira appreciation was as a result improved liquidity as the daily turnover increased by 13.31 percent to $69.71 million on Monday from $61.52 million recorded on Friday.
Currency traders who participated in the trading on Monday maintained bids at between N399.00k and N437.41/$, according to the data from the FMDQ.
Exchange rate remained flat at N482 at the Bureau De Change (BDC) segment of the foreign exchange market and at the parallel market.
The continued spread of the COVID-19 pandemic weakened global economic recovery and led to a decline in foreign exchange inflow into the economy in the month of January 2021.
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Provisional data from the Central Bank of Nigeria (CBN) showed that aggregate foreign exchange inflow into the economy was $5.47 billion, showing decreases of 54.2 percent and 67.5 percent below its level in the preceding month and the corresponding month of 2020, respectively.
This was attributed to the respective 66.2 percent and 45.1 percent decrease in inflow through the CBN and autonomous sources.
The CBN’s economic report for January revealed that foreign exchange outflow through the economy fell by 22.1 percent and 57.1 percent to $2.97 billion, from the levels of $3.81 billion and $6.92 billion, respectively, in the preceding month and the corresponding month of 2020.
This was driven, largely, by the decline in outflow through the CBN. Consequently, the foreign exchange transactions through the economy resulted in a net inflow of $2.50 billion, compared with $8.13 billion and $9.90 billion in the preceding month and the corresponding period of 2020, respectively.
Foreign exchange inflow through the CBN dropped significantly during the review month. Aggregate foreign exchange inflow through the CBN was $1.73 billion, indicating decreases of 66.2 percent and 66.4 percent, from the levels of $5.14 billion and $5.16 billion, in the preceding month and the corresponding month of 2020, respectively.
This was due, mainly, to the absence of interbank/institutional swaps and proceeds from government debts in the review period.
