On Monday, the amount of dollars transacted in the Investor & Exporter FX market increased by 46.69% to $123.25m.
The official market turnover of dollars on Friday was $84.02 million. On Monday, this figure rose to $123.25 million.
Despite this, the naira fell 1.96 percent to N795.41/$ at the close of trading on Monday, after closing at N780.14/$ on Friday, according to FMDQ OTC Securities Exchange statistics.
On Monday, trade began at N780.83/$ and ended at N795.41/$.
However, throughout trading, the naira fluctuated between N1099/$ and N701/$.
Meanwhile, the naira continued to tumble in the parallel market, falling 4.55 percent to N1,150/$ from N1,100/$ on Friday.
Awolu, a Bureau de Change Operator, told The PUNCH, “I am buying at N1,110/$ but selling at N1,150/$.”
Another trader, Kadir, adding, “If you want to sell, it is N1,150/$ today.” If you wish to buy it, the price is N1,170/$.
Following the Central Bank of Nigeria’s instruction in June to allow the free flow of the country’s currency rate on the official Investor & Exporter FX market, the naira has continued to decline.
Prior to this change, the naira was trading at 471.67/$ on the FMDQ and 765/$ on the parallel market in June.
However, according to recent data from Economist Intelligence, the naira is expected to close the official market in 2023 at N810/$.
This was disclosed in its recently released nation report.
It added that following the floatation of the naira in June, the apex bank has subsequently reverted to guiding the exchange rate by restricting access to foreign exchange sales for banks and other dealers that quote rates that are not within a recommended rate.
According to the EIU, this unfavorable monetary policy would continue to put pressure on the naira.
“However, other factors undermining the naira, such as deeply negative short-term real interest rates, necessitate orthodox monetary policy, which the authorities have shown insufficient appetite for,” it said.
As a result, we do not expect a currency float to happen between 2024 and 2028, while it appears likely that the gasoline subsidy would stop when the Dangote refinery can replace imports, beginning in late 2024.”