• Wednesday, November 29, 2023
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Naira gains 0.25% at official market on increased supply

FX market opens at N1,135 per dollar on black market

Naira on Monday appreciated at the Investors and Exporters (I&E) forex window, Nigeria’s official foreign exchange market, gaining 0.25 percent following increased dollar supply.

After trading on Monday, the dollar was quoted at the rate of N768.17 as against N770.17 quoted on Friday at the I&E window, data from the FMDQ indicated.

The naira appreciation followed increased dollar supply from willing sellers, which include the banks, investors/exporters and the Central Bank of Nigeria (CBN).

The daily foreign exchange market turnover rose by 57.91 percent to $198.13 million on Monday from $125.47 million recorded on Friday.

On June 14, 2023, the CBN abolished segments of the official FX market to the I&E Window, where the “Willing buyer and Willing seller” was re-introduced. Based on this adjustment, the official rate rose from N463.38/$ to N768.17, the current rate.

Naira on Monday depreciated against the dollar by 0.38 percent (N3/$1) at the parallel market, also known as black market following increased demand.

After trading on Monday, the dollar quoted at the rate of N773 as against N770 quoted on Friday at the black market.

Traders attributed the naira depression to increased demand for dollars, mostly from individuals who want to travel for education, tourism or for business.

“The demand for dollars is rising and that is the reason the rate is lower today than Friday,” said one of the traders.