The Naira reversed the losing streak in its exchange rate against the US dollar at the parallel market on Tuesday, trading at an average of N760/$1 and representing a 1.94% appreciation from the N775/$1 it exchanged when the market opened on Monday.
Some of the FX traders at the parallel market during telephone chat with our correspondent linked the sharp appreciation of the local currency to the scarcity of the US dollar as electioneering activities continue to reduce business spending nationwide.
Similarly, some FX market analysts believe that the rebound of the local currency is not unconnected with its increasing scarcity nationwide following the ongoing implementation of the Central Bank of Nigeria’s cash swap policy, which has made it very difficult for depositors to withdraw the currency from banks and other channels.
At the cryptocurrency Peer-to-Peer (P-2-P) exchange, the Naira slightly depreciated by 0.03% on Monday, trading at an average of N753.1/$1, from N752.9/$1 it exchanged at the previous day.
Available data from the CBN indicated that at the investors and exporters (I&E) window, the Naira depreciated on Monday to close at N461.5/$1, compared to N461.25/$1 it exchanged at during the preceding day’s trading session.
The apex bank disclosed that the FX turnover at the I&E window on Monday depreciated by 50.75% on Monday, totalling $40.28 million, from $81.78 million that exchanged hands at the window during the previous trading session.
The trading trend at the official window on Monday reflected that the local currency’s opening indicative rate at N461.6/$1 while its highest exchange rate during intra-day trading was N462.06/$1 before it settled at N461.5/$1.
The trading data indicated that the local currency traded for as low as N440/$1 during intra-day trading.
Meanwhile, the CBN reported that Nigeria’s external reserves level declined for the fifth consecutive day last Friday to $36.76 billion from $36.78 billion that accrued to the account the previous day.
