Dateline: Thursday, 27th May 2021, Nigeria: The exchange rate between the naira and the US dollar closed at N411/$1 at the Importers and Exporters window, where forex is traded officially.
The Naira appreciated further against the US dollar on Thursday at the official NAFEX window to close at N411 to a dollar. This represents a 0.12% gain when compared to N411.50/$1 recorded on Wednesday, 26th May 2021.
However, the Naira hit an almost three-and-a-half-year low, as it depreciated at the parallel market, closing at N495/$1 on Thursday, May 27, 2021. This shows a N2 drop when compared to the N493/$1 that was recorded the previous day.
The Naira fell to a near three and half year low at the black market after the CBN adopted the NAFEX rate as the new official exchange rate and the country’s external reserve lost N987.1 million in about 6 weeks.
According to Reuters, the naira hit N500 to a dollar at the black market in November, a more than 3 and a half years low.
The exchange rate movement at the black market is driven by speculation based on the adoption of the NAFEX rate by the CBN.
▪︎Trading at the official NAFEX window
Naira appreciated against the US dollar at the Investors and Exporters window on Thursday to close at N411/$1, representing a 50 kobo gain when compared to the N411.50/$1 that was recorded the previous day.
The opening indicative rate closed at N411.08 to a dollar on Thursday 27th May 2021, representing a 30 kobo gain when compared to the N411.38 to a dollar that it closed at on Wednesday, 26th May 2021.
An exchange rate of N420.25 to a dollar was the highest rate recorded during intra-day trading before it settled at N411/$1. It also sold for as low as N400/$1 during intra-day trading.
Forex turnover at the Investors and Exporters (I&E) window declined by 25.7% on Thursday, 27th May 2021.
Data tracked by Nairametrics from FMDQ revealed that forex turnover dropped from $471.85 million recorded on Wednesday, 26th May 2021 to $350.65 million on Thursday, 27th May 2021. (Nairametrics)
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