Wednesday, August 4, 2021
stock exchange

Naira gains at official market as Reps ask CBN to act

Naira gained marginally against the U.S. dollar at the Investors and Exporters (I&E) window on Wednesday, as foreign exchange supply rose, data from the FMDQ Security Exchange where forex is officially traded showed.

Data showed that the local unit closed at N410.95, a N0.55 or 0.13 per cent appreciation from N411.50 it traded Tuesday.

However, the domestic currency remained unchanged at the unofficial market.

The naira experienced an intraday low of N420.77 and a high of N400.00 before closing at N410.90 on Wednesday.

This happened as foreign exchange supply increased significantly by 261.50 per cent, with $226.98 million posted as against $62.79 million recorded in the previous session on Tuesday.

The last time naira closed around the rate of N410.00 and above was on June 6, when it closed at N410.75.

Meanwhile, the naira on Wednesday remained unchanged at the parallel market, data posted on, a website that collates parallel market rates in Lagos showed.

Data posted showed the domestic currency exchanged hands again with the hard currency at N502.00, the same rate it has been trading since June 4 last week.

Based on the aforementioned, the disparity between the black market and official market rates is pegged at N91.05, translating to a margin of 18.12 per cent as of the close of business on Wednesday.

The House of Representatives on Wednesday urged the Central Bank of Nigeria (CBN) to halt the continuous slide of the naira.

The lawmakers unanimously reached the decision on Wednesday after debating a motion of matter of urgent public importance moved by Bamidele Salam (PDP, Osun) during plenary.

While presenting the motion, Mr Salam said naira has lost 9 per cent in the past six months.

β€œWhile the value of the Nigerian Naira relative to the US Dollar has declined by 9 per cent in the last 6 months, the South African Rand and Ghanaian Cedi have appreciated by 11.4 per cent and 1 per cent, respectively,” he noted.

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