Forex liquidity improves by 57% as naira remains stable

Foreign exchange liquidity has improved by 57 per cent, as Nigeria’s exchange rate at the NAFEX window remained stable to close at N386/$1 during intra-day trading on Monday, September 28.

Also, the naira remained stable for the third consecutive day, closing at N467/$1 at the parallel market on Monday.

At the black market where forex is traded unofficially,  the naira remained stable against the dollar to close at N467/$1, according to information obtained by our correspondent – the same rate it traded on Friday, September 25.

However, the local currency has strengthened by about 7.8 per cent within the last one week at the black market, as the Central Bank of Nigeria introduced some measures targeted at exporters and importers.

This was to boost the supply of dollars in the forex market, and reduce the high demand for forex by traders.

The CBN has sold over $200m to Bureaux de Change since the resumed forex sales on Monday, September 7, 2020. This was expected to inject more liquidity to the retail end of the forex market and discourage hoarding and speculation.

Conversely, the exchange rate against the dollar has failed to sustain the initial gains made, after the CBN announced plans to provide liquidity.

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