Naira Dips At Official Market Despite Rise in Forex Liquidity

The naira began the week negative as it depreciated against the Dollar by 87kobo at the Investors and Exporters (I&E) segment of the foreign exchange market.

Naira depreciated against the US dollar to close at N411.67/$1 on Monday, representing a 0.21% drop when compared to the N410.80/$1 that was recorded the previous trading day.

However, the naira still remained stable at the parallel market to close at N515/$1 on Monday, August 16, 2021. This was the same rate that it traded the previous trading day.

The local currency slumped at the official market as demand pressure persists despite a 7.5% increase in forex liquidity. The disruption in FX liquidity did not help matters yesterday as forex traders were unable to sufficiently meet the requests of their customers, which put pressure on the domestic currency.

Details of the transactions at the I&E market showed that the turnover for the day expanded by 7.5 per cent or $8.14 million on Monday as trades worth $117.17 million were executed compared with the $109.03 million carried out at the preceding session.

At the interbank segment of the forex market, the exchange rate of the Naira to the US Dollar remained static at N410.11/$1 at the close of transactions on Monday.