Naira on Monday firmed marginally against the dollar, gaining N1.00/$1 as demand moderated at the parallel market, also known as black market.
During the intra-day session on Monday, the dollar was quoted at an average rate of N771 (between N767 and N775) as against N772 quoted on Friday.
Black market operators said on Monday that demand has moderated as the rate at the official market almost converges with the parallel market.
As the foreign exchange (FX) market react to the latest development that has played out in the month of June, the Naira depreciated by N3 or 0.39 percent week-on-week (w/w) to N773/$1 from N770/$1 at the parallel market as FX market and traders continue reacting to the forces of demand and supply, according to a report by Cowry Asset Management Limited.
Also, at the investors’ and exporters’ (I$E) FX window, the Naira edged the United States’ dollar as more funds inflow hit the system with a gain in the naira N0.92 or 0.12 percent w/w to close at N769.25/$1 from N770.17/$1 in the last week. This comes as traders continue to position themselves in a bid to ascertain the fair value of the naira.
Also, following the latest development in the FX market, the Naira at the forward contracts market weakened across all forward contracts against the dollar for another week except for the 12-months forward contract which gained against the dollar by 5bps to close at N878.26/$1.
The report noted that the Bonny Light crude price took a reversal by 2.20 percent or ($1.65) w/w, to close at $73.45 per barrel on Wednesday from $75.10 per barrel in the previous week.