Naira Falls In Foreign Exchange Markets Irrespective Of 32% Increase In Dollar Supply

Friday, 27th August 2021:  The exchange rate between the naira and the US dollar closed at N412/$1 at the Investors and Exporters window, where forex is traded officially.

Naira depreciated against the US dollar to close at N412/$1 on Friday, representing a N1.12 loss when compared to N410.88/$1 recorded at the close of trading on Thursday, 26th August 2021.

Also, the naira further depreciated at the parallel market as it closed at N524/$1 on Friday, 27th August 2021, representing a N2 drop when compared to N522/$1 recorded on the previous trading day.

The naira performed poorly against the US dollar across the forex markets despite a 32% increase in dollar supply.

The naira depreciated against the US dollar on Friday 27th August 2021 to close at N412 to a dollar, representing a 0.27% depreciation compared to N410.88/$1 recorded in the previous trading day.

The opening indicative rate closed at N411.80/$1 on Friday, August 27, as against N411.23/$1 recorded on Thursday.

An exchange rate of N413 to a dollar was the highest rate recorded during intra-day trading before it settled at N412/$1, while it sold for as low as N400/$1 during intra-day trading.

Meanwhile, forex turnover at the Investors and Exporters (I&E) window rose by 32% on Friday, 27th August 2021.

According to data from FMDQ, forex turnover increased from $147.31 million recorded on Thursday to $216.52 million on Friday, 27th August 2021.