Naira has gained at the official market as external reserves rise for the first time in over a month.
This online newspaper understands that 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, the naira depreciated against the US dollar on Friday, dropping by 0.53% to close at N570/$1 as against N567/$1 that was recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by NewsOnline Nigeria.
Nigeria’s foreign reserve reduced by 0.08% on Wednesday, 1st December to close at $41.15 billion compared to $41.19 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
The 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.