Naira gains big over dollar at exporters window

Naira gains big over dollar at exporters window 

The dollar and naira exchange rate closed at N741.5/$1 at the official investor and exporter window on Monday.

This is considered a strong gain as it amounts to 3.61 per cent.

The forex market opened at N760.39/$1 and sold for an intra-day high of N792/$1 before closing at N741.5/$1. It also sold for an intraday low of N696.37/$1.

Monday’s closing represents a gain of 3.61 per cent, the strongest since June 16th when it gained 5.58 per cent, and a strong sign that supply may be gradually recovering.

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On the parallel market where the dollar is traded unofficially, the naira closed at N772/$1 representing a N31 disparity from the official rate.

External reserves

The external reserves have dropped by about $2.8bn in the first half of 2023 as Nigeria continues to struggle with weak crude oil output and a lack of foreign investor participation in the capital market.

The external reserves which at the beginning of the year stood $37bn dropped to $34.1bn June 2023.

Nigeria’s external reserve is an important barometer for valuing the country’s currency. It is also used to estimate how many months of imports it can finance.

The naira’s exchange rate affects the prices of goods and services, inflation, exports, imports, foreign reserves, and external debt.

Naira gains big over dollar at exporters window