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Naira gains against dollar at black market, weakens at I&E forex window

BUSINESS REVIEW: How is Nigeria dealing with its devalued currency and resisting another seemingly inevitable recession?

Naira strengthened against the U.S. dollar on Wednesday at the parallel market, inching up by 1.08%, supported by improving liquidity in the retail segment of the foreign exchange market, with bureau de change operators receiving more than $250 million in forex supply from the Central Bank of Nigeria (CBN) since 7th September.

The local currency appreciated by N5, closing at N465 to a dollar, compared to the N470 rate of exchange reported at the end of Tuesday’s trading session, data from abokiFX, which collates rates from street traders, showed.

Read also: Naira falls on black market after forex ban for food imports

CBN’s relaxation of supply controls has aided the Naira in regaining value against the greenback by nearly 7.8% at the parallel market in the past one week.

There is notable fall in speculative forex trading at this side of the currency market, with hoarding practices moderately discouraged by increasing supply, even though the heap of dollar demand, spurred by the recent influx of local manufacturers and international investors into the black market due to the scarcity of dollar at the spot market, is yet to clear.

Meanwhile, Naira fell marginally against the dollar at the over-the-counter spot market popularly called the Investors and Exporters (I&E) forex window as it closed at N386, 0.06% weaker than a previous close of N385.75.

Trade volume also dropped, in this case by as much as 37%. It slid from $120.51 million to $75.83 million.

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Ripples Nigeria

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