T
The naira has depreciated to N386.33 at the Investors and Exporters (I&E) window as investors and importers continue to scramble for foreign exchange (forex) supplies. The naira weakened N0.33 against the dollar when compared to the N386 to a dollar it traded last week Friday. The exchange rate at the I&E window is different from the Central Bank of Nigeria’s (CBN) published exchange rate, which currently stands at N360/$1. According to AbokiFX.com, as of Monday, May 18, 2020, the I&E window rate is different from the exchange rate at the parallel market, which still remains at N455/$1.
Also, information from the daily trading at FMDQ (where FX is traded by importers and investors) shows that the naira improved against the dollar by N0.77, closing at N386.33 to a dollar, as against the indicative rate of N387.10 to a dollar that it opened with on Monday, May 18, 2020. The exchange at the start of the week was N386. The slight rate movement in the I&E window and the stability at the parallel market suggest that there may be some slight improvements in the forex market.
A cursory look at the data from the FMDQ indicates that the turnover for the day was up by 117.14 per cent at $40.28m, against the $18.55m turnovers that were recorded on Friday. However, it is still a far cry from the $300m – $400m per day that it traded in February. There is some level of optimism in the forex market following hopes for improved forex earnings by the government due to the rise in crude oil prices globally. This is also aided by the recent inflow of $3.4bn from the International Monetary Fund (IMF) into the CBN as emergency finance facility to help mitigate the impact of COVID-19.
