Naira Devalues 0.2% at Investors, Exporters FX Window

Naira Devalues 0.2% at Investors, Exporters FX Window
Nigerian Naira

Naira Devalues 0.2% at Investors, Exporters FX Window

Amidst the ongoing foreign currency crisis in Nigeria, demand for the United States (US) dollar negatively impacted the market rate at the official window on Thursday, according to market data. The naira loses 0.2 per cent against the dollar on Thursday, traded at N462 at the Investors’ and Exporters’ window.

This translated to a decline of 0.2 per cent in purchasing power of the naira when compared to the N461.09 it exchanged to the dollar on Wednesday. Broadstreet analysts’ consensus is that the Nigerian naira will be devalued as pressures continue to rise in the year.

The country is battling low foreign currencies inflow, a large FX backlog and declining external reserves. For weeks, Nigeria’s gross external reserves position has been declining and revenue receipt from oil remains unimpressive.

The FX market trading data showed that the open indicative rate closed at N461.50 to the dollar on Thursday. An exchange rate of N462.11 to the US dollar was the highest rate recorded within the day’s trading before it settled at N462.

The Naira sold for as low as N446 to the dollar within the day’s trading. Given the market heated market temperature, a total of 97.78 million dollars was traded at the official Investors’ and Exporters’ window.

The forex market has started to see another possibility of devaluation following the Nigerian banks’ decision to cut down their customers’ personal and business travelling allowance. For traders, a fifty per cent cut in business and personal travelling allowance is a red flag.

This will push Nigerians with foreign bills payable to seek foreign currency in the open market and then widen the gap between official and parallel market FX rates further – creating an opportunity for currency speculators.

In the first quarter of 2023, the parallel market surged to N760-780 following election spending and the cash crunch also added its own effects on the exchange rates across the space.

While analysts predicted that the exchange rate will hit N500, FX scarcity could further push the rate above this level before the year end.

“Nigeria is practically earning low from crude exports as confirmed by the Organisation of Petroleum Exporting Countries (OPEC) that production level printed at 1.3 million barrels per day – the best shot in the first quarter against 1.8 million barrels per day quota for the country.

For Nigeria to earn more foreign currency, the authority has no lasting solution or currency program while maintaining a stance to support the Naira via periodical market intervention – a currency management approach that appears to have failed to keep the local currency steadies.

A slew of currency analysts told MarketForces Africa that they think a gradual naira weakening is more likely in the near term, with very tight or non-existence upside risks remaining very tangible in such a volatile environment.

# Naira Depreciates 0.2% at Investors, Exporters FX Window

Nigerian Banks Give Fresh Update on Naira Swap

Advertisement

African Club Association set...

Some of African Football Club’s senior executives and Club Chairpersons will travel to Cairo, Egypt to attend the launch of the African Club Association (“ACA”) on...

Morocco Football Federation lifts...

The Moroccan Football Federation, FRMF, on Monday had a warm reception for the Morocco U-17 team as they arrived from Indonesia where they got to the...

Adobe, Figma Deal Bad...

The United Kingdom (U.K) Competition and Markets Authority said it has provisionally found Adobe's planned $20 billion acquisition of collaboration software company Figma would likely harm...

Paris metro ticket price...

Paris metro ticket prices will almost double during the 2024 Olympics, the French capital region’s president said on Tuesday, adding that residents with passes would be...

Banking Stocks, MeCure Drive...

The Nigerian Exchange (NGX) rides on buying waves due to equities investors' improved buying sentiments on Mecure and banking stocks, detail from Alpha Morgan Capital Limited...

Zenith Bank to Open...

Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the French Government to establish a subsidiary of Zenith Bank Plc in France, Nigeria’s most...

African Club Association set for launch in Cairo

Some of African Football Club’s senior executives and Club Chairpersons will travel to Cairo, Egypt to attend the launch of the African Club Association (“ACA”) on...

Morocco Football Federation lifts players’ spirits with welcome party for U17 team

The Moroccan Football Federation, FRMF, on Monday had a warm reception for the Morocco U-17 team as they arrived from Indonesia where they got to the...

Adobe, Figma Deal Bad for Innovation- UK Regulator

The United Kingdom (U.K) Competition and Markets Authority said it has provisionally found Adobe's planned $20 billion acquisition of collaboration software company Figma would likely harm...

Paris metro ticket price to double during 2024 Olympics

Paris metro ticket prices will almost double during the 2024 Olympics, the French capital region’s president said on Tuesday, adding that residents with passes would be...

Banking Stocks, MeCure Drive Midday Rally on NGX

The Nigerian Exchange (NGX) rides on buying waves due to equities investors' improved buying sentiments on Mecure and banking stocks, detail from Alpha Morgan Capital Limited...

Zenith Bank to Open Subsidiary in France

Zenith Bank Plc has signed a Memorandum of Understanding (MoU) with the French Government to establish a subsidiary of Zenith Bank Plc in France, Nigeria’s most...

Great sportsmanship as Ronaldo tells ref to overturn penalty he won in Asian Champions League match

Al-Nassr said their forward Cristiano Ronaldo “showed a great deal of sportsmanship” after he urged the referee in Monday’s Asian Champions League game against Persepolis to...

Dangote Refinery to List on Nigerian Exchange

Africa’s richest man, Aliko Dangote, has announced plans to list his $20bn Dangote Petroleum Refinery on the Nigerian Exchange (NGX). The post Dangote Refinery to List on...

Oil Prices Fall Below $80 Amidst Uncertainties

Oil prices fell below $80 per barrel early Monday as members of the Organization of the Petroleum Exporting Countries (OPEC) and allies (OPEC+) prepared to meet...