Naira Hits Intraday High of N1130/$1 Before Closing Steady
The Nigerian Naira experienced intraday fluctuations, reaching a high of N1130 against the U.S. dollar, signaling volatility in the official market. Despite the initial depreciation, the currency closed unchanged in the parallel market.
This depreciation followed a recent gain against the dollar in the official market, where the exchange rate reached N814.60/$1 on Thursday.
However, this marked a decline of 2.42% compared to the previous day’s rate of N794.89/$1. The day’s trading saw an intraday high of N1130/$1 and an intraday low of N701/$1, indicating a significant spread of N429/$1.
Data from the official NAFEM window revealed a 31.97% increase in forex turnover, reaching $100.06 million at the close of trading.
Despite the fluctuations in the official market, the naira maintained stability at the parallel forex market, quoting an exchange rate of N1240/$1, consistent with the rate from the previous Friday. Peer-to-peer traders, however, quoted around N1159.20/$1.
Addressing the forex challenges, the Central Bank of Nigeria (CBN) has taken steps to clear the backlog of foreign exchange forward obligations.
Yemi Cardoso, the governor of the CBN, highlighted these efforts at a bankers’ dinner in Lagos, noting the positive market response to tranche payments made to 31 banks.
Source: Nairametrics
