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 black market despite over 100% improvement in dollar supply

Chike Olisah by Chike Olisah
January 11, 2021
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

On January 8, 2020, the exchange rate between the naira and dollar closed at N393.50/$1, the fifth trading day of 2021 at the Investors and Exporters’ (NAFEX) window where forex is traded officially.

This is an appreciation from the N393.67 recorded on the previous trading day, January 7, 2021.

READ: Global Economy to grow by 4% in 2021 – World Bank

RelatedPosts

Why Naira is heading towards N700/$ again

Black market rate depreciates to N675/$1 as foreign reserve falls sharply below $39 billion

Nairametrics understands that the over 100% improvement in dollar supply is occurring at the same time there was a price increase on Friday, sustaining the previous trading day’s increase.

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: Nigerian Aviation: Exchange rate, 7.5% VAT suspension and other factors to determine survival – Experts

However, at the black market where forex traded unofficially, the exchange rate depreciated to close at N472/$1 on Friday, January 8, 2021, breaking the almost 2 weeks period of stability. This represents a N2 drop when compared to N470/$1 it closed at the previous trading day January 7, 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 N78.50, representing a 16.7% devaluation differential.

READ: Naira devalues to N410.25/$1 at the official NAFEX Window

NAFEX

The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Friday, closing at N393.50/$1 as against N393.67 reported on January 7, 2021.

  • This represents a 17 kobo gain when compared with that of the previous trading day.
  • The opening indicative rate was N393.49 to a dollar on Friday. This represents a 20 kobo gain when compared to the N393.69 that was recorded on Thursday, January 7, 2021.
  • The N413.85 to a dollar was the highest rate during intra-day trading before, it still closed at N393.50 to a dollar. It also sold for as low as N380/$1 during intra-day trading.
  • Forex turnover: Forex turnover at the Investor and Exporters (I&E) window increased by 102.5% on Friday, January 8, 2021.
  • According to the data tracked by Nairametrics from FMDQ,  forex turnover rose from $32.41 million on Thursday, January 7, 2021, to $65.63 million on Friday, January 8, 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: List of Cryptos outperforming Bitcoin, with weekly gains of over 100%

Can the naira sustain below N400?

On 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 N413.85, the market still closed lower at N393.50 as the trend from the previous trading day continued, blowing any initial belief that a devaluation had occurred last week.

READ: Gold fast losing the battle to Bitcoin

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 NewsCBNforexI&E windowNAFEXNairaNigeria News

Comments 1

  1. Daniel Danjuma says:
    May 25, 2021 at 11:59 am

    how much is the means for you soon

    Reply

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

    • Lagos announces partial closure of Third Mainland Bridge
    • Five jobs in Nigeria’s fashion industry that are not design-related
    • Insecurity: N6.5 billion demanded in kidnapping ransoms in Nigeria since July 2021 – SBM

    Follow us on social media:

    Recent News

    Third Mainland Bridge is intact and safe for commuters - FG

    Lagos announces partial closure of Third Mainland Bridge

    August 13, 2022
    Five jobs in Nigeria’s fashion industry that are not design-related

    Five jobs in Nigeria’s fashion industry that are not design-related

    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