Business

Naira remains flat at official market

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3 years ago

October 25, 2021

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The exchange rate between the naira and the US dollar remained stable at the weekend, closing at N415.07/$1 at the Investors and Exporters window, where forex is traded officially.

The opening indicative rate closed at N414.10/$1 on Friday, representing a 16 kobo drop when compared to N413.94/$1 recorded in the previous trading day.

An exchange rate of N429 to a dollar was the highest rate recorded during intra-day trading before it settled at N415.07/$1, while it sold for as low as N404/$1 during intra-day trading.

Also, at the parallel market, it closed against the US dollar at N574/$1, representing a 0.17% gain when compared to the N575/$1 that was recorded as of the close of trading activities on Thursday, 21st October 2021.

The local currency remained flat at the official market as dollar supply rose significantly by 134%.

Meanwhile, the International Monetary Fund (IMF) has attributed the decline in diaspora remittances into Nigeria to the uncertainty in the country’s foreign exchange market.

Nigeria’s foreign reserve closed at $40.76 billion on Wednesday, 20th October 2021, representing a $377.04 million boost in the reserve position. The nation’s foreign reserve increased by 0.93% on Wednesday from $40.39 billion recorded as of the previous day.

Nigeria’s foreign reserve gained $195 million on Thursday, 21st October 2021 to close at $40.958 billion compared to $40.763 billion recorded as of the previous day. The latest increase represents a 0.48% increase in the country’s foreign reserve position.

The nation’s foreign reserve has gained $4.18 billion so far in October, on the back of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market.

The gains recorded so far in the month is higher than the $2.76 billion gain recorded in the month of September 2021, while the recent increase puts the year-to-date gain at approximately $5.59 billion.