The Nigerian naira fell against the US dollar in the Investors’ and Exporters’ foreign exchange (FX) market on Monday, as the foreign cash scarcity persisted.
The Naira fell by 4.27 percent in comparison to the N743.07 it traded for the US dollar following the conclusion of business on August 4. According to traders, the open indicative rate ended at N771.64 to the dollar on Monday.
FX illiquidity has continued to have an impact on the supply side in a country that relies heavily on imported products and services. The local currency spot foreign exchange rate settled at N774.78 in the Investors and Exporters window, according to FMDQ Exchange data.
The exchange rate opened the week N743.07 after the previous rally following an underwhelming FX supply in June. Data from FMDQ showed there was a 66% decline in forex inflows into investors’ and exporters’ forex windows in July.
In the parallel market, the Naira experienced a depreciation of 0.79% against the US dollar, reaching N888 as bears returned to the global crude oil market.
Brent crude fell 1.03% to $85.35 per barrel, while WTI crude lost 1.12% to $81.90 per barrel. Oil futures were lower, driven by profit-taking activities across the market, as investors re-evaluated the potential impacts of extended supply cuts implemented by Saudi Arabia and Russia.
In the market, a spot exchange rate of N799 to the dollar was the highest rate recorded within the day’s trading before it settled at N774.78. The Naira sold for as low as N475 to the dollar within the day’s trading.
A total of 45.98 million dollars was traded at the investors and exporters window on Monday. Overall, Naira depreciated by 4.27% against the US Dollar as forex scarcity persists.
