The exchange rate between the naira and the dollar January 22, 2021, depreciated closing at N394.17/$1 at the NAFEX (I&E Window) where forex is traded officially.
Forex turnover, however, dropped by about 42.2% as pressure on the foreign exchange market continues.
The Central Bank of Nigeria (CBN) in a new circular, read the riot act to the International Money Transfer Operators (IMTOs) as they have threatened to sanction some of them who still facilitate diaspora remittances in naira, contrary to its earlier directive that it must be in foreign currency. Also, the exchange rate at the black market where forex traded unofficially depreciated at N477/$1.
The exchange rate at the parallel market closed at N475/$1 on the previous trading day of January 21, 2021, representing an N2 drop the exchange rate disparity between the parallel market and the official market is about N82.83, representing a 17.36% devaluation differential
The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Friday, closing at N394.17/$1. This represents a 17 kobo drop when compared to the N394/$1 that it closed on the previous trading day.
The opening indicative rate was N393.15 to a dollar on Friday, this represents an N1.01 gain when compared with the N394.16 to a dollar that was recorded on Thursday, January 21, 2021.
The N395 to a dollar was the highest rate during intra-day trading before it closed at N394.17 to a dollar. It also sold for as low as N390/$1 during intra-day trading.
Forex turnover at the Investor and Exporters (I&E) window dropped by 42.2% on Friday, January 22, 2021.
According to a data tracked by from FMDQ, forex turnover declined from $77.04 million on Thursday, January 21, 2021, to $44.51 million on Friday, January 22, 2021.
The exchange rate is still being affected by low oil prices, dollar scarcity, a backlog of forex demand, and a shaky economy that has been hit by the coronavirus pandemic.
There are fears that the exchange rate at the black market might be under pressure in the coming weeks as importers scramble for dollars to meet their demands.