The Nigerian naira climbed somewhat on Tuesday as the amount of foreign currency (FX) transactions at the Investors and Exporters window closed at over $64 million, despite the economy’s cash shortfall.
According to data from the FMDQ OTC FX platform, the local currency strengthened against the US dollar and traded at N744.97, however the parallel market exchange rate deteriorated.
Separate FX dealers and experts stated late Tuesday night that the naira gained 0.39 percent compared to the N747.87 it traded for the US dollar on Monday, ahead of the presidential election tribunal verdict on Wednesday.
On Tuesday, the open indicative rate was N774.99 to the dollar. According to market statistics, the spot exchange rate for the greenback reached N799.83 during the day’s trade before settling at N744.97.
According to FX market statistics, the naira traded for as little as N588 to the dollar throughout the day’s trading. According to FX statistics, a total of 63.60 million dollars were exchanged in the investors and exporters window on Tuesday. FMDQ reported in its financial market report that spot FX market turnover was $3.61 trillion or $4.66 billion in July 2023, a 24.34% or $1.16 trillion decline from the previous month’s turnover of $4.77 trillion.
In the FX Market, the US Dollar appreciated against the Naira, with the spot exchange rate increasing by 22.94% (₦143.60) to close at an average of ₦769.51 in July 2023 from ₦625.90 recorded in June 2023. Further, exchange rate volatility decreased in July 2023 as the Naira traded within an exchange rate range of ₦740.08 -₦803.90 compared to ₦464.67 – ₦770.38 recorded in June 2023.
While the US dollar rallied further on Tuesday, the euro could weaken against sterling if the European Central Bank holds interest rates at the Sept. 14 meeting, says Rabobank senior FX strategist Jane Foley in a note.
