Naira gains against dollar on black market

Naira appreciated against the United States Dollar on the parallel market on Monday, having stagnated at N477 against the greenback for some days.

The local currency exchanged for N465 to the dollar, representing a N12 gain over the closing rate of the previous session, according to abokiFX, which collates rates from informal currency traders.

Meanwhile, the naira remained stable against the dollar at over-the-counter spot market also known as the Investors and Exporters (I&E) window, closing at N385.67. The rate touched an intraday high of N386 and a low of N383 before settling at N385.67

The opening indicative rate was N386.50 to a dollar in contrast to the N386.93 reported on Friday.

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Forex turnover expanded by 19% at the I&E window. According to the FMDQ, turnover climbed from $12.09 million on Friday to $14.37 million.

The total forex trading at the I&E window in July was $937 million relative to the $875 million posted the month before.

Even though the Central Bank of Nigeria (CBN) has been making moves to harmonise Nigeria’s multiple exchange rates, the gap between the I&E forex window rate and that of the black market, which the CBN describes as “illegal” is still immense, standing at N79.33.

It is expected that the resumption of Bureau de Change operations later this month will further boost liquidity in the forex market.

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