The Naira on Wednesday recorded marginal gain of N6 to close at N782/$ in the Investors and Exporters (I&E) window- official market following improved liquidity and transaction activities at the official window.
The naira had on Monday closed at N744/$ at the I&E window, made a N44/$ loss on Tuesday and a sudden rebound yesterday.
Regardless of the fluctuation, foreign exchange traders’ total transactions increased to $90.52 million, data obtained from the FMDQ Exchange showed
They increased their transaction value by $22.42 million, which is 32.9 per cent higher than the $68.10 million worth of forex traded the previous day.
However, data from Naira Rates, a black market aggregator, disclosed that the dollar cost N793/$1 in the Bureau De Change window.
The price of the United States Dollar was raised from the average rate of N790.8/$1 reported during trading the preceding day.
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It was also mentioned that the pound stepped up in value, as the naira remained weak against the British currency which traded at an average rate of N1043.1/£1, against the N1034.6/£1 rate posted the day before.
According to the data, persons or businesses that patronised the black market also bought the euro at a higher rate of N888.6/€1, up from N884.7/€1.
The Central Bank of Nigeria (CBN) unified exchange rates into the I&E window and allowed market forces to determine exchange rate for the naira.
Data from FMDQ Exchange showed gradual drop in market liquidity from over $260 million turnover to less than $70 million in recent weeks.
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The I&E window was activated in June 2017, and represents the broader forex market, where dollars sourced from autonomous sources are traded between Authorised Dealers, Clients and the CBN.
The unification of multiple exchange rates into the I&E window has been described by stakeholders as a game- changer in the apex bank’s plan to achieve exchange rate stability.
The policy, which allows forex dealers and investors to buy and sell dollars at exchange rate of their choice, provided they can find buyers. This move aims to ensure that the naira is allowed to trade at the market-clearing rate in the forex market.