Naira depreciates at I & E FX window by 0.04%

By Kayode Tokede

The exchange rate between Naira and the Dollar depreciated by 0.04 per cent to close at N 411.67 on Tuesday at the Investors & Exporters Foreign Exchange (I & E FX) window.

The local currency on Monday had closed at N411.5/$1 at the Investors and Exporters window, where foreign exchange traded officially.

In the same vein, naira remained stable at the parallel market to close at N504/$1, despite a marginal appreciation during intra-day trading.

Meanwhile, foreign exchange turnover at the I&E window closed at $115.67 million on Tuesday.

FMDQ, foreign exchange turnover increased from $135.28 million/ recorded on Friday to $139.49 million on Monday.

Meanwhile, the foreign reserve position grew by $23.26 million on Fridayto close at $33.25 billion compared to $33.23 billion recorded as of Thursday.

Nigeria’s foreign reserve is now moving towards an upward trajectory after immense pressure encountered in recent years, brought on by the effects of COVID-19 on crude oil earnings, the decline in crude oil prices as well as the decline in diaspora remittances and foreign inflows amongst others.

A cursory look at the historic data obtained from the Central Bank of Nigeria shows that Nigeria boasted of an external reserve of as high as $45 billion as of this time in 2019, which has depleted by about $12 billion in the space of two years.

Meanwhile, the latest boost which has been sustained for seven days will come as good news for the Nigerian government and the Central Bank as a positive trend means increased forex and an improved exchange rate position for the naira.