Finally, Naira Nears Convergence in Black and Official Markets to Achieve Tinubu’s Aim
- The Naira appreciated against the dollar marginally at the black market as demand slowed
- The Naira gained N1.00 against the dollar at the parallel market and N0.02 at the official market
- The Naira neared convergence to achieve the much-touted foreign exchange unification by the federal government
The Naira recovered marginally against the dollar on Monday, July 3, 2023, gaining N1.00 per dollar as demand thawed at the parallel market.
During the intra-day session on Monday, July 3, 2023, the dollar was quoted at an average rate of N771, between N767 and N775, as against N772 quoted on Friday, June 30, 2023.
Source: UGC
Black and official market rates nears unification
According to black market operators, demand for the US greenback moderated as the rate at the official market almost merges with the parallel market.
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BusinessDay reports that as the foreign exchange market reacted to the development in June, the Naira fell by N3 or 0.39% week-on-week to N773 to a dollar at the parallel market. Operators continue to respond to the forces of demand and supply.
At the Investors’ and exporters’ (I&E) window, the Naira firmed against the dollar as more funds inflow came into the system, with the Naira gaining about N0.02 or 0.12% week-on-week to close at N769.25 to a dollar from N770.17 in the last week.
The development comes as traders continue to position themselves to establish the Naira’s fair value.
Also, due to the new development in the FX market, the Naira at the forward contract market fell across all forward contracts against the dollar for another day but for the 12-month forward contract, which rose against the dollar by 5bps to close at N878.26 to a dollar.
Naira depreciates to N840 per dollar at the official market and trades lower in the black market
Legit.ng reported that the exchange rate between the dollar and the naira at the official Investor and Exporter (I&E) window sold as high as N840 to a dollar, the highest since the Central Bank of Nigeria (CBN) began floating the naira.
The amount is the highest recorded on the official window, exceeding the N815 to a dollar previously registered.
The exchange rate, however, closed at N768 at the end of the business after depreciating to N770.17 to a dollar.
Source: Legit.ng
