Naira depreciates to US dollar at official market, despite increase in forex supply

The foreign exchange (FX) supply on the official market affected the performance of the Naira against the United States dollar at the market on Monday, April 11.

Data from FMDQ securities shows Naira depreciated by 0.08 per cent or 33 kobo against the Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market as it was exchanged at N417.00/$1 compared with the previous session’s exchange rate of N416.67/$1.

There was huge pressure at the market as the local currency touched an intraday high of N410.00 and a low of N444.00 before closing at N417.00.

This is despite a 17.39 per cent increase in forex supply to the official market.

Read also: Naira closes first week of April weaker despite 48.32% increase in forex supply

FMDQ reports a total of $127.12 million was transacted by exporters and investors compared to $108.28 million from the last trading day.

It was the same story for Naira against the Euro and British Pounds.

CBN data shows Naira suffered a decline of 12 kobo against the Pound Sterling at the spot market, trading at N542.25/£1 compared to the previously traded rate of N542.37/£1.

While against the Euro, it lost N1.75 to settle at N453.66/€1 in contrast to the previously quoted rate of N451.91/€1.

On the black market, the Naira remained stable, closing at N586 to the dollar, the same amount at which dealers sold at the start of the week.

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