Turnover in Investors and Exporters (I&E) rises 17% to $3.22bn (August Forex Report)- GCFRNG
By Elizabeth Adegbesan
The exchange rate of the dollar against foreign exchange and imports (I&E) of the Nigerian foreign exchange market rose by 17%, per month, to $ 3.22 billion in August from $ 2.75 billion in July 2021.
Vanguard’s annual turnover in the window showed that $ 693.5 million was sold in the first week of August.
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Reversal rose from 2.0 percent to $ 681.02 million in the second week but dropped from 30 percent to $ 479.12 in the third week, before resuming growth in the fourth week after a sharp rise from 66 percent to $ 795.12 million.
The turnover stood at $ 568.12 million in the last two days of August indicating further growth during the week.
Meanwhile, the Naira appreciated by 42 kobo at that time as the exchange rate of the window fell to N411.08 kobo per dollar and on August 31 from N411.50 per dollar on August 1st.
However, the naira fell to N10 in a similar market.
Vanguard currency data from naijabdcs.com, the gateway to foreign exchange data online, showed that exchange rates show a rise in N525 per dollar on August 31st from N515 per dollar on August 1, 2021.
In September, the Naira fell to N530 / $ 1 as it almost stopped trading last weekend.
According to Lukman Otunuga, research analyst at FXTM, the Naira continues to face pressure in similar markets despite the Central Bank of Nigeria’s efforts to curb unauthorized transactions.
He said: “The local currency is also depreciating against the British Pound and the Euro. Despite the fact that the CBN is increasing the supply of dollars to banks and banning the sale of the currency to traders, the shortage is still a cause for concern.
“Since March last year, the naira has been depreciated three times as oil revenues flow in and out. With the Naira falling in line with the black market exchange rate and increasing at the government rate, this is not well suited for businesses that need dollars, ”he said.
Analysts at FSDH Research Management have predicted another forex pressure forecast in the third quarter declaring a limitation on oil and crude oil futures as well as imports.
“In the second quarter of 2021, the Naira was stable on the I&E window, in the last 15 minutes. The naira closed four quarters at N411.5 / US $, while the quarter closed at N409.3. This interactive display in the I&E window showed that the performance of the external storage was greatly increased in 15 minutes. Storage lost 4.4 percent of its value in the quarter.
In a similar market, the Naira fell, reaching N500 per dollar due to Forex shortages and forecasting services, following the CBN support of NAFEX in May. “As a result, the gap between NAFEX rates and similar markets widened within 15 minutes.
We anticipate that forex pressure will continue into the third quarter due to high imports from both source and non-oil imports and imports. “