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Naira back to N462.50 at investors, exporters market

THE naira exchange rate moved back to N462.50 at the investors’ and exporters’ window after hitting the roof amidst sustained scarcity of the United States dollar in the local economy. Naira had depreciated to N464 at the weekend and made a comeback, then slipped.

Foreign currency traders said Nigeria’s exchange rate movements have been swinging left, and right depending on the level of foreign currency demand that the supply accommodates.

Demand for the United States dollar continues to grow as companies depend heavily on imports to further production. While Nigeria’s exporters play strong at the Central Bank window, the foreign currencies receipts are yet to match imports bills.

The disequilibrium between the FX demand and supply level has forced the local currency value to decline. In 2022, the naira lost about 11% despite the apex bank intervention.

With a sustained market intervention, the Nigerian naira reclaimed value lost on Tuesday as the foreign exchange market continues to balance the opposing forces of the demand and supply side.

At the investors’ and exporters’ foreign exchange market, exchange rate improved by N1, the same amount lost in the previous day amidst an expectation that the local currency will be devalued in 2023.

Central Bank of Nigeria conducted a foreign exchange auction last week, and banks that are active players now have significant US dollars in the vaults for onward sales to Nigerians.

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Naija Times