Naira closes N768.16/$ at I&E FX
The Naira at Investors & Exporters Foreign Exchange market (I&E) closed on Thursday at N768.16 against the dollar from N793.70 it opened for trading.
The dollar gained on Thursday by 3.2per cent.
The exchange rate between the naira and the dollar had gained 6.58per cent to close at N742.93 on Tuesday.
This represents the biggest daily gain seen since the revised I&E window was launched. It is also the most daily gain since at least 2019.
FX turnover also rose a whopping 352 per cent to close at 156.29 trillion, the largest volume of forex traded since June 30th, 2023.
Despite closing stronger, the exchange rate still recorded an intra-day high of N831/$1 while the P2P black market rate fell to as low as N841/$1.
However, demand pressure continues to exert on the black market amidst the dearth of supply.
At N768.16 against the dollar, the disparity between the exchange rate at the I&E window and the black market rate is between N80 and N100, one of the highest also recorded.
Exchange rate analysts also point to the galloping inflation rate as a major concern for exchange rate stability.
During the week, the National Bureau of Statistics reported an inflation rate of 22.79 per cent which contrast with the stronger US inflation rate of three per cent.
The wider the disparity the more naira is needed to purchase a dollar.
Meanwhile, the money supply also rose to over N64 trillion according to Central Bank of Nigeria (CBN) data for June 2023.
The exchange rate opened at N788.17/$1 and sold for as high as N831/$1. The naira also reached a low of N707.99 per dollar, indicating high volatility in the foreign exchange market.
The NAFEX exchange rate between the naira and the US dollar has closed at an average of N790.8/$1.
The sum of forex turnover at the I&E window rose by 352.36% to $156.29 million, from the turnover of $34.55 million traded last week Friday.
The total turnover that exchanged hands in the last twelve trading days is $1 billion, compared to the turnover value of $1.67 billion recorded in the same period in June 2023.
The Naira-US dollar exchange rate at the unofficial parallel market on Monday depreciated to N825 per dollar, compared to the average rate of N820/$1 on Friday.
