The naira plunged 40.78% against the US dollar to Naira 664.04 at the exchange window for investors and exporters as Nigeria seeks to converge its exchange rate.
The sharp devaluation follows a decision to set interest rates on floating rates so that banks can set reasonable interest rates on the terms and settlements of foreign currency transactions.
On the other hand, the parallel market rose and he rose 0.85% until flight N758 (up from flight N765 as market forces tried to converge).
Forex traders said spot rates narrowed the gap between official and open market rates, while forward rates worsened. According to data from the FMDQ exchange, naira is trading at 471.67 naira at the investor-exporter (I&E) window.
On a monthly basis, the three-month and one-year dollar/naira futures rates ended at Naira 666.79, Naira 700.33 and Naira 757.32 on a monthly basis, according to Cowley Assets. , said losses of 189.10 naira and 191.70 naira were suggested. in a note. In its comments, Fitch sees Nigeria’s extensive use of exchange controls and import restrictions as key credit weaknesses.
Rating agencies said the policy discourages foreign investment and places currency constraints on the private sector. In his inaugural address, the president called on the Central Bank of Nigeria (CBN) to work towards achieving a single exchange rate.
Fitch expects the exchange rate to be gradually liberalized and the official rate to approach the market clearing level.
