Connect with us

Business

Naira bounces back against U.S dollar at official market

Published

on

Naira exchanges for N562 per dollar, as CBN moves to stop the slide

The Nigerian currency bounced back at the official market against the United States dollars despite a significant increase in the demand for foreign currencies.

Data obtained from FMDQ securities showed that the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Tuesday, September 21 closed at N413.28/$1.

This represents a 40 kobo or 0.10 per cent gain against the greenback yesterday when compared to the N413.68/$1 it closed on Monday.

During the trade, a turnover of $200.65 million was recorded at the session as against the $91.23 million achieved at the preceding day, indicating a surge of $109.42 million or 119.9 per cent.

Read also: CBN orders traders, others to accept e-Naira, highlights benefits of digital currency

The local currency was able to withstand the pressure because of the sufficient supply of FX to the market by the Central Bank of Nigeria (CBN) which is making efforts to stabilise the space.

Meanwhile, the Central Bank of Nigeria has revealed that in an effort to defend the Naira in April, the country’s external reserves depleted by 2.4 percent in April 2021.

CBN in its latest economic report for April, noted that the decline in inflow constrained foreign exchange market liquidity and exacerbated demand pressure hence the need for intervention in the forex market.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × five =

Investigations