Nigeria’s exchange rate at the NAFEX window depreciated to as high as N389.5 during intraday trading on Tuesday July 28th 2020. In contrast, the exchange rate at the parallel market remains unchanged after hitting a new low on Monday July 27th when it closed at N475/$1 on.
The naira fell to as high as N390.50 during intraday trading before strengthening to the closed rate of N389.50. It also sold for as low as N380/$1 during intraday trading. Forex is sold at several prices during the day.
The 0.4% depreciation week on week (it was N388.5/$1 coming into last week) is perhaps attributed to the weaker forex turnover that was experienced last week.
Parallel Market: At the black market where forex is traded unofficially, the Naira remain unchanged against the dollar to close at N475/$1 on Tuesday, according to information from Abokifx, a prominent FX tracking website. This was the same rate that it exchanged on Monday, July 28. Some traders contacted by Nairametrics research also confirmed the same price of N475/$1.
Forex Turnover: Meanwhile, forex turnover at the Investor and Exporters (I&E) window recorded a slight gain on Tuesday, July 28, 2020, as it rose by 1.15% day on day. According to the data tracked from FMDQ, forex turnover increased from $38.86 million on Monday, July 27, 2020, to $39.31 million on Tuesday, July 28, 2020.
The average forex sale for last week was as low as $27 million compared to $47 million the week before. It was also noted that on no day last week did we record a sale close to or above $100 million, the first time this month. FX turnover remains subdued this week.