The Nigerian naira spot rate ended Monday’s forex window for investors and exporters on healthy ground after the local currency’s weight against the US dollar fell over the weekend.
Quoted from the FMDQ exchange, the window for investors and exporters saw the naira trade at 768.17 naira to the dollar, up 0.26 per cent. Compared to N770.17 traded or greenbacked at the close of business on Friday.
Market exchange rates have almost converged. Due to trends in the forex market, players have expectations that interest rate harmonization will materialize fairly quickly. Nigerian banks are already asking individual account holders to convert their balances into their local currency at the current exchange rate. At exchange windows for investors and exporters, local currency traders reported that the open target rate closed at 750.83 naira to the dollar. Meanwhile, the exchange rate against the US dollar was 840 Naira, the highest rate ever recorded in overnight trading until it settled at 768.17 Naira.
According to foreign exchange reports, the naira was sold at a low price of 465 naira to the dollar in day trading. A total of $198.13 million was traded in the official window for investors and exporters on Monday
Meanwhile, in the parallel market, Naira fell by 0.39% from 770 Naira to 773 Naira, according to market data. Deposit banks have announced that depositors can now convert US dollars in their domicile accounts into Naira as interest rates converge. In addition, one-month and three-month forward rates are at low levels of N765.58 and N785.64 respectively, indicating minor losses, Cowley Asset Management said in a note. By contrast, traders said the one-year forward rate showed strength, rising by N7.96 to close at N870.78. Naira works to improve exchange balance in I&E window.
