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

Naira falls at NAFEX window despite 56.6% improvement in dollar supply

Chike Olisah by Chike Olisah
January 7, 2021
in Currencies, Spotlight
Naira falls across forex markets as businesses resume after public holidays
Share on FacebookShare on TwitterShare on Linkedin

On January 6, 2020, the exchange rate between the naira and dollar closed at N394.50/$1, the third trading day of 2021 at the Investors and Exporters’ (NAFEX) window where forex is traded officially.

This is a depreciation from the N393.83 recorded on the previous trading day, January 5, 2021.

READ: Naira falls across forex markets as businesses resume after public holidays

RelatedPosts

Why the crypto market is still a big deal in Nigeria

Dahiru Mangal: Nigerian billionaire businessman who started out as a truck driver

Nairametrics understands that the improved dollar supply could not stop the rise in prices on Wednesday after the gain recorded in the last 2 trading days.

We also reported last week that the latest round of adjustment at the I&E window is temporary as the rates could fall back below N400/$1.

News continues after this ad


READ: Ethereum defying law of gravity surges past $1,050

However, at the black market where forex traded unofficially, the exchange rate continued to remain stable at N470/$1 on Wednesday, January 6, 2021. The exchange rate at the parallel market closed at N470/$1 on the previous trading day January 5, 2021.  It has been trading at N470/$1 since the 29th of December 2020.

News continues after this ad


The exchange rate disparity between the parallel market and the official market widened again to N75.5, representing a 16% devaluation differential.

READ: Nigeria’s growing budget deficit

NAFEX

The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Wednesday, closing at N394.50/$1 as against N393.83 reported on January 5, 2021.

  • This represents a 67 kobo drop when compared with that of the previous trading day.
  • The opening indicative rate was N396.30 to a dollar on Wednesday. This represents a N2.33 drop when compared to the N394.63 that was recorded on Tuesday, January 5, 2021.
  • The N413.05 to a dollar was the highest rate during intra-day trading before, it still closed at N394.50 to a dollar. It also sold for as low as N388/$1 during intra-day trading.
  • Forex turnover: Forex turnover at the Investor and Exporters (I&E) window rose by 56.6% on Tuesday, January 5, 2021.
  • According to the data tracked by Nairametrics from FMDQ, forex turnover rose from $33.51 million on Tuesday, January 5, 2021, to $52.50 million on Wednesday, January 6, 2021.
  • The average daily forex sale for last week was about $169.93 million, which represents a huge increase from the $34.5 million that was recorded the previous week.
  • The exchange rate is still being affected by low oil prices, dollar scarcity, a backlog of forex demand, and a shaky economy that has been hit by the coronavirus pandemic.

READ: Exchange rate gains at the black market as FX Turnover rises over 1000%.

Can the naira sustain below N400?

Last Thursday, December 31, 2020, the central bank allowed the exchange rate to depreciate to N410.25 as a late demand surge forced prices higher.

Even though the highest price for the day was N413.05, the market still closed lower at N394.50 as the trend from the previous trading day continued, blowing any initial belief that a devaluation had occurred last week.

READ: Vitafoam Nigeria proposes N875.59 million dividend to be distributed to shareholders

Devaluation supporters who had expected this to be a nudge towards “market reality” will be surprised by the appreciation recorded on Monday, suggesting that the central bank will continue with the defence of the local currency in the new year. On the flip side, policy supporters will cite this as the effect of market forces.

Related

Tags: Black MarketBusiness NewsCBNFeaturedforexNAFEXNigeria News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






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

    Recent News

    • Sujimoto launches her new luxury condominium with Oikos premium doors
    • Lagos announces partial closure of Third Mainland Bridge
    • Five jobs in Nigeria’s fashion industry that are not design-related

    Follow us on social media:

    Recent News

    Sujimoto launches her new luxury condominium with Oikos premium doors

    Sujimoto launches her new luxury condominium with Oikos premium doors

    August 13, 2022
    Third Mainland Bridge is intact and safe for commuters - FG

    Lagos announces partial closure of Third Mainland Bridge

    August 13, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

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

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com