Naira trades at official window amid holiday
By Aanuoluwapo Olaleye, Abuja
Naira at the official market of the Central Bank of Nigeria (CBN) traded flat at N41 against the Dollar on Monday.
This followed Monday’s public holiday by the federal government to mark 2021 Democracy day.
Our correspondent gathered that the exchange rate between the naira and Dollar closed at N410.13 against the Dollar in the official Investors and Exporters Foreign Exchange window.
Naira appreciated against the Dollar on Friday to close at N410.80 to a dollar as against N411.83/$1 recorded on the previous day, representing a N1.03 gain.
However, the naira remained stable at the parallel market, as it closed at N502/$1, while forex turnover increased marginally by 3.2per cent from $89.89 million to $92.78 million.
Crude oil prices have also maintained strong performances as Brent Crude hit $73 per barrel in the early hours of Monday morning.
The naira gained against the Dollar at the Investors and Exporters window on Friday to close at N410.8/$1, representing a N1.03 appreciation when compared to the N411.83/$1 that was recorded on the previous day.
The opening indicative rate closed at N410.56 to a dollar on Friday, representing a 23 kobo gain when compared to the N410.79/$1 recorded on Thursday.
Also, an exchange rate of N430 to a dollar was the highest rate recorded during intra-day trading, before it settled at N410.8/$1. It also sold for as low as N400/$1 during intra-day trading, the same as recorded in over a week.
Forex turnover at the I&E window increased by 3.2per cent on Friday.
According to FMDQ, the forex turnover increased from $89.89 million/ recorded on Thursday to $92.78 million on Friday.
According the CBN, the country’s external reserve continues to plunge further, as it dipped by $40.79 million on Thursday to close at $34 billion.
The decline represents a 0.12per cent reduction in Nigeria’s external reserve position and the lowest level since May 2020.
A total of $1.37 billion has been lost in reserves year-to-date, while month-to-date loss stands at $222.33 million.
The decline has persisted despite the gains recorded in the global crude oil price. Oil prices are already trading over $72 per barrel. This has however been attributed to the decline in crude oil sales, due to the effect of the covid-19 pandemic on the buying capacity of India, which is one of the world’s largest importer of oil.
