Dollar depreciates at I & E FX window by 0.65% to N411.75/$
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange (I & E FX) window on Tuesday depreciated by 0.65 per cent to close at N411.75 against the Dollar.. The local currency gained by 0.35percent and 0.17percent against the Euro and Pound Sterling closing at N485.66 and N569.52 respectively.
Naira had appreciated against the Dollar at the I& E FX window on Monday to close at N411.5 against the Dollar from N411.75 against the Dollar recorded at the end of trade on Friday.
According to FMDQ Exchange, foreign exchange turnover of $176.13million was traded by investors and exporters on Tuesday.
The FMDQ had reported that foreign exchange turnover at the I&E window increased significantly by 140.7percent to $178.13 million Monday.
FMDQ, foreign exchange turnover surged from $73.99 million recorded on last Friday.
At the parallel market, the Naira was flat closing at N595, N708 and N505 against the Euro, Pound and Dollar respectively.
However, the Naira maintained stability at the parallel market to close at N505/$1, the same as recorded on Friday, 9th July 2020.
According to analysts at Investment One research, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”
Money market rates increased today as Open Buy Back and Overnight rates rose from 14.50 percent and 15.00percent to close at 18.50percent and 19percent respectively.
The bond market traded on a quiet note today although yields increased on long maturities. The yields on the 5-year, 7-year and 10-year benchmark bonds close flat at 12.05percent and 12.45percent respectively.
The Central Bank of Nigeria (CBN) has said the country’s external reserve plunged $21.03 million on Friday, 9th July 2021 to close at $33.09 billion. This came on the back of back-to-back gains recorded in just two days.
The forex reserve position continues to deplete despite crude oil price rally at the global crude oil market.
So far in the month of July 2021, Nigeria’s reserve has lost a total of $223.77 million while its year-to-date loss stands at $2.27 billion.
It had appeared that the initial rise in the price of crude oil had begun to reflect in Nigeria’s reserve, however, it has reverted to its negative trend.
