Chimara BygoldData at the FMDQ Security Exchange where foreign exchange (forex) is traded officially has shown that the exchange rate between the Naira and the US dollar opened at ₦413.89/$1 on Wednesday 10th November after it closed at ₦415.07 to a $1 on Tuesday, 9th November 2021.
A Comparison between the closing and opening rates above, show that the dollar is under pressure as the Naira gained N1.18 at the official market.
Also, at the Parallel Market (Black Market) the US dollar crashed massively on Wednesday, October 9, 2021.
The exchange rate of Naira to dollar stood at N553/$1, according to
currency dealers at the NARCO wing of the Murtala Muhammed International Airport Ikeja, Lagos.
One dealer explained that when the dollar is in free fall, the rate is not stable but determined by a mix of market forces and bargaining power of dealers.
While some finance experts attributed the appreciation of the Naira to the Central Bank’s efforts at injecting liquidity into the official market, other analysts point to increasing energy prices.
Specifically, analysts at the Bank of America on Monday, were quoted as having said that commodity-linked currencies had been the best performers since the summer as energy prices rose.
“Prospects for global central banks to be more aggressive to counter growing inflation fears may put the USD under some pressure, though the American Central Bank known as the Fed in turn may act sooner than previously expected, supportive of the dollar,” said Ronald Simpson, managing director, global currency analysis, at Action Economics.
However, the CBN has not updated its rates for currencies on Wednesday as at the time of publishing this currency update.
But, the apex bank displayed N411.34/$1 as at Tuesday, November 9, 2021 compared to N410.82 to the green back as at Monday, November 8,2021.
The CBN also displayed the British PoundSterling as of Tuesday November 9, at N558.3529 to the Sterling.
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