[ad_1]
- Importers and Nigerians in search of dollars will be hoping that the new week is better at the forex markets
- Nigerian currency closed the previous week on a negative note against the dollar in both official and unofficial foreign exchange markets
- With the dollar wobbling in the international market, the new week is expected to be better for the naira
The Naira ended the previous week on Friday, August 23, 2023 on a low against the United States Dollar in the official and unofficial forex markets.
The FX markets include the Parallel, Peer-to-Peer (P2P), and the Investors and Exporters (I&E) which is the official FX window.
Photo credit: Jean Chung/Bloomberg
Source: Getty Images
Checks by Legit.ng show the biggest loss happened in the parallel forex market also known as the black market.
In the parallel market, the Naira ended last week with a depreciation to the Dollar by N5 to sell at N915/$1.
PAY ATTENTION: Follow us on Instagram – get the most important news directly in your favourite app!
Equally, in the P2P arm of the unofficial forex market mostly used by crypto traders, data shows the Naira lost N4 against the American currency to sell at N915/$1, in contrast to the previous trading day’s N911/$1.
Official market exchange rate
While in the I&E window, Nigerian currency lost N6.73 or 0.78 percent to trade at N778.42/$1 on Friday, August 23 compared to Thursday’s exchange rate value of N771.69/$1.
This happened as forex transactions in the official window dropped to $73.80 million in the last trading session.
This represents a $47.80 million or 39.3 per cent lower than the $121.60 million reported on Thursday.
In the official market, the Naira traded flat against the Pound Sterling and the Euro on Friday at N976.76/£1 and N504.64/€1, respectively.
Expectations for the new week
The pressure in forex demand is expected to continue this week, but there are indications that the Central Bank of Nigeria will intervene in the FX markets to bring down the dollar exchange rate at the unofficial markets.
Also, Reuters is reporting that the dollar has eased from a 12-week peak on Friday and it is expected to continue in the new week.
This will, however, not happen if the US Federal Reserve decides to increase interest rates this week.
Increasing interest rates often tend to make the dollar stronger against foreign currencies.
CBN announces dollar to naira price verification portal
Meanwhile, in another report, it was revealed that the Central Bank of Nigeria had introduced a new portal that will put an end to malpractices in the foreign exchange market.
The portal is set to go live by the end of August 2023, and it is expected that it could be a game-changer if it is done right
Source: Legit.ng
[ad_2]
Source link
