Nigeria: Naira Appreciates at I&E window, hits N384 to $1

• CBN intervenes in the foreign exchange market, the local currency, naira, on Monday May 4, 2020, appreciated against the dollar.
• FMDQ details show that the naira strengthened by N1.33 against the dollar, closing at N384 to a dollar as against the N385.33 to a dollar with which it opened.
• The Naira also appreciated on the parallel market, selling at N430 to a dollar on Monday, compared to the N450 to a dollar sold last week Friday.

As the lockout slowly loosens and the Nigerian Central Bank (CBN) intervenes in the foreign exchange market, the local currency, the naira strengthened against the dollar at the foreign exchange window for investors and exporters (I&E).

The details available from the FMDQ show that the naira strengthened by N1.33 against the dollar, closing at N384 to a dollar as against the N385.33 to a dollar with which it opened.

Further review of the FMDQ details reveals that the average foreign-exchange turnover on Monday decreased to $28.23 million compared to the $83.41 million it was last week’s Thursday. This reflects a decrease of 66.16 per cent.

Liquidity on the foreign exchange market tends to be growing, as the CBN makes more dollars available to end-users.

The CBN declared on Wednesday last week the resumption of dollar sales for SMEs and school fees for students studying outside the country in anticipation of the government’s easing of lockdown orders and partial resumption of business on May 4th.

READ ALSO: CBN Debunks Naira Devaluation, Threatens Sources of False Speculations

As reported earlier, the Naira also appreciated on the parallel market, selling at N430 to a dollar on Monday, compared to the N450 to a dollar sold last week Friday.

The I & E foreign exchange window, developed by the CBN in April 2017, is the market trading segment for investors, exporters and end-users that allows foreign exchange trading to be exchanged for sale.