Naira weakens against the dollar at I&E window

Naira weakened against the U.S. dollar on Monday at the Investors and Exporters (I&E) window of the foreign exchange (forex) market, crumbling to N387.33 at the end of trade.

It shed N0.83 against the hard currency, which had exchanged for N386.50 at the previous session on Friday.

The I&E window’s rate of exchange varies from that of the Central Bank of Nigeria, which is currently N360 to a dollar. Similarly, it is different from the parallel market rate which was N450 on Monday, the same rate at which it was traded on Friday.

According to FMDQ Securities Exchange, Naira closed at N387.33 to a dollar on Monday compared to the indicative rate of N387.46 at which it opened at the beginning of the day’s session.

Read also: Naira exchanges for N460/dollar at black market, might fall further

The opening indicative rate on Monday reflected a marginal improvement of N0.29 relative to the N387.75 at which it opened last Friday.

The turnover recorded on Monday plunged steeply by 87 per cent to $14.66 million contrary to the $112.89 million turnover posted at the session before.

A fall in dollar liquidity in the forex market in spite of improvement in forex earnings occasioned by increase in oil prices could be responsible for depreciation in the value of Naira at the I&E window.

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