Nigeria’s currency, the Naira slightly depreciated in its exchange rate for the US dollar by 0.14% on Tuesday at the parallel market to trade at an average of N741/$1, compared to its N740/$1 exchange value last Friday’s trading session.
Available information from foreign exchange (FX) dealers at Wuse Zone 2 of the Federal Capital Territory (FCT) Abuja indicated that the market remained lull as business owners were suspending key investment decisions until the changeover of government at the end of this month.
However, the Naira improved against the British Pound Sterling to trade at an average of N933/£1 on Tuesday, indicating 0.21% appreciation when compared to N935/£1 it recorded last Friday.
Similarly, the local currency also gained in exchange rate for the Euro as it appreciated by 0.62% to trade at an average of N805/€1 during the early hours of the trading on Tuesday, from N810/€1 recorded on Friday, 28th April 2023.
According to data sourced from a P2P exchange platform, the Naira also rebounded at the cryptocurrency P2P Exchange market, as it traded at a minimum of N738/$1, representing a gain of 0.81% from N743.99/$1 that it traded in the previous trading session.
The apex bank has been supplying dollars to FX traders at the official window as part of its monetary policy steps to achieve a stable exchange rate for the Naira against other foreign currencies.
Many financial experts believe that the apex bank’s interventions at the I&E window is affecting the foreign reserves’ accruals but the benefits of the CBN’s monetary policy action on the FX market cannot be over-emphasized in view of the job creation and other value addition benefits.
In addition, the experts attributed the low foreign reserves position of the country to other factors, including the changing pattern of foreign trade, especially as it relates to the global supply chain in recent months, institutional changes in the economy and structural shifts in production, amongst others
