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Naira Falls At Official Window Despite 266% Increase In Dollar Supply

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The exchange rate between the naira and the US dollar Wednesday, 29th September 2021 closed at N414.73/$1, at the official Investors and Exporters window.

Naira depreciated against the US dollar on Wednesday, to close at N414.73/$1, representing a 0.06% drop when compared to N414.50/$1 recorded on Tuesday 28th September 2021.

Meanwhile, the exchange rate at the parallel market closed at N574/$1 on Tuesday. This is according to information obtained by Nairametrics from BDC operators in Lagos.

The naira fell at the official market despite a massive 266.2% increase in dollar supply. The local currency is still hitting record lows against the US dollar at the black market despite the news of Nigeria’s Eurobond sales which is meant to boost the nation’s external reserves.

Nigeria, last week, sold $4 billion Eurobond after investors oversubscribed to the tune of $12.2 billion with the country’s external reserve rising by $2.3 billion in the month of September.

The rise in the external reserve on the back of the Eurobond issue is likely to increase the CBN’s capacity to support the naira.

Trading at the official NAFEX window
The exchange rate depreciated against the US dollar on Wednesday, 29th September 2021 to close the day at N414.73 to a dollar, representing a 23 kobo drop when compared to N413.50/$1 recorded on Tuesday, 28th September 2021.

The opening indicative rate closed at N414.05/$1 on Wednesday, representing a 36 kobo drop when compared to N413.69/$1 recorded on Tuesday, 28th September 2021.

An exchange rate of N415.20 to a dollar was the highest rate recorded during intra-day trading before it settled at N414.73/$1, while it sold for as low as N404/$1 during intra-day trading, the same as the previous day.

Meanwhile, forex turnover at the official window rose by 266.2% on Wednesday, 29th September 2021.

According to data tracked by Nairametrics from the FMDQ, forex turnover increased significantly from $127.68 million recorded on Tuesday to $467.56 million on Wednesday 29th September 2021.

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Hammed Tajudeen is the editor in-chief of Blaze News, holds Higher National Diploma(HND) in Mass Communication, graduated from Osun State Polytechnic, Iree.

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