Naira has hit strong at official market with external reserve rising.
Newsone reports the exchange rate between the naira and the US dollar closed at N414.73/$1 at the official Investors and Exporters (I&E) window.
This online news understands that the naira appreciated against the US dollar on Friday to close at N414.73/$1, representing a 0.02% gain compared to N414.8/$1 recorded in the previous trading sessions as Nigeria’s external reserve increased by $69 million, the first time in over a month.
Forex turnover at the official market dropped by 37.4% to $139.67 million from $223.18 million recorded in the previous day.
However, according to information obtained from BDC operators interviewed by Nairametrics, the Nigeria naira depreciated against the American dollar on Friday, dropping by 0.53% to close at N570/$1 as against N567/$1 that was recorded in the previous trading session.
Nigeria’s foreign reserve reduced by 0.09% on Thursday, 2nd December to close at $41.12 billion compared to $41.15 billion recorded as of the previous day. The recent decline in the nation’s external reserve is attributed to the intervention by the apex bank in the official forex market.
Trading at the official NAFEX window
Newsone Nigeria reports exchange rate at the Investors and Exporters window appreciated by 7 kobo to close at N414.73/$1 on Friday, compared to N415.8/$1 recorded over the past six trading sessions.
The opening indicative rate closed at N414.06/$1 on Friday, which represents a 12 kobo depreciation compared to N413.94/$1 recorded in the previous trading session.
An exchange rate of N461.27/$1 was the highest rate recorded during intra-day trading before it settled at N414.73/$1, while it sold for as low as N404/$1 during intra-day trading.
Forex turnover at the official window declined by 26.2% to $103.01 million on Friday.
According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window dropped from $139.67 million recorded on Thursday 2nd December 2021 to $103.01 million on Friday 3rd December 2021.
Nigeria External reserve
Newsone understands that Nigeria external reserve dropped by 0.09% on Thursday, 2nd December 2021, to close at $41.12 billion. This represents a decrease of $36+.5 million compared to $41.15 billion recorded as of the previous day.
The consistent decline that had been experienced in the country’s reserve level could be attributed to the continuous intervention of the apex bank in ensuring the stability of the exchange rate.
It is worth noting that the nation’s foreign reserve had gained $5.99 billion in the month of October, as a result of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market.
Nigeria’s external reserve lost $633.47 million in value in the month of November, as against a gain of $5.99 million recorded in the previous month and $2.76 million gain in September 2021. On a year-to-date basis, the reserve gain has reduced to $5.74 billion.