Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets Currencies

Naira remains stable at the forex market as NAFEX market turnover drop by 59% 

Chike OlisahbyChike Olisah
3 years ago
in Currencies, Spotlight
Dollar, Exchange rate, FOREX, NAFEX market turnover drop by 59%, Naira crashes to N470/$1 as currency uncertainty worsens 
Share on FacebookShare on TwitterShare on Linkedin

The exchange rate at the parallel market remained stable for the second consecutive day closing at N472/$1 on Wednesday, July 22, 2020. However, on the officially recognized NAFEX market, the forex turnover was down again by 59.1% while the exchange rate also remained stable closing at N388.17/$1.

READ ALSO: CBN injected $2.63 billion to defend Naira in one month 

Exchange Rates

Parallel Market: At the black market where forex is traded unofficially, the Naira remained stable closing at N472 to a dollar on Wednesday, according to information from Nairametrics FX tracker. Nairametrics collates parallel market exchange rates as far back as 2017. The parallel market also caters to forex trades through wire transfers especially for buyers who cannot fulfill their dollar demands at the I&E window or the SMIS window. Exchange rate for wired transfer is often at a premium to the black market rate.

READ MORE: Forex turnover drops by 28.3% as naira depreciates against the dollar at I&E window

NAFEX:  The Naira also remained stable against the dollar at the Investors and Exporters (I&E) window on Wednesday, closing at N388.17/$1, this the same rate that was reported on Tuesday, July 21.  The opening indicative rate was N388.65 to a dollar on Wednesday. This represents a 15 kobo drop when compared to the N388.50 to a dollar that was recorded on Tuesday.

Exchange rate disparity: The exchange rate disparity between the official NAFEX rate and back market rate still remained widen on Wednesday and is still a whopping N84. Nigeria maintains multiple exchange rates comprising the CBN official rate, the BDC rates, SMIS, and the NAFEX (I&E window).

READ ALSO: Fixed Income Monitor: Renewed Demand Interest in the Treasury Bills Market

Nairametrics reported a few weeks ago that the government had set plans in motion to unify the multiple exchange rate in line with requirements from the World Bank. Nigeria is seeking a world bank loan of up to $3 billion. The country has been under pressure from the International Monetary Fund and the World Bank for currency reforms.

Forex Turnover

Meanwhile, forex turnover at the Investor and Exporters (I&E) window recorded a further decline on Wednesday, July 22, 2020, as it dropped by 59.1% day on day. According to the data tracked by Nairametrics, forex turnover decreased from $29.77 million on Tuesday, July 21, 2020, to $12.17 million on Wednesday, July 22, 2020.

READ ALSO: Tether Treasury mints 120 million USDT

Forex News

Nairametrics had reported that the forex turnover at the NAFEX window where investors and exporters trade forex was about $1.57 billion between June 2020 and July 17, 2020, which falls short of demand according to reports. This is according to the daily market turnover data tracked from the website of the FMDQOTC within the last few weeks. The forex turnover has averaged $47 million over the last 32 days.

Download the Nairametrics News App

The volatility of the foreign exchange market is fueled by low forex inflow and the activities of currency speculators who are encouraged by the widening gap between the official rate and the parallel market rate.

The data from the Central Bank of Nigeria (CBN) shows a decline in the external reserve as it fell from $36.57 billion on June 3, 2020 to $36.08 billion as of July 17, 2020. The declining external reserve reduces the capacity of the CBN to intervene in the forex market, thereby putting more pressure on the market.

Related

Tags: Exchange RateFeaturedforexI&E windowNAFEXNaira

Leave a Reply Cancel reply

Press one
hfm
Mega Millions
fidelity banner
SME
HFM
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • RECAP: Drama at Seplat Energy Plc as Access Holdings finalises new deal
  • FG confirms 3-day 2023 census exercise will commence on May 3
  • Learnhub Institute hosts second edition of the Women, Wealth, and Real Estate Conference

Follow us on social media:

Recent News

RECAP: Drama at Seplat Energy Plc as Access Holdings finalises new deal

RECAP: Drama at Seplat Energy Plc as Access Holdings finalises new deal

March 26, 2023
FG confirms 3-day 2023 census exercise will commence on May 3

FG confirms 3-day 2023 census exercise will commence on May 3

March 26, 2023
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Lifestyle
  • Opinions
  • 2023 Elections

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections

© 2023 Nairametrics

error: Alert: Content selection is disabled!!