Naira Falls to N1089/$ On official Investor and Exporter WindowNaira Falls to N1089/$ On official Investor and Exporter Window

The official Investor and Exporter window witnessed the naira falling to N1089.51/$ on Tuesday, marking a significant 27.19% drop from its Monday closing rate of N856.57/$
On Tuesday, the naira experienced fluctuations, opening at N922.22/$, reaching a high of N1251/$, a low of N720/$, and finally closing at N1089.51/$.
The continued decline in the naira’s value on the official FX window, now the second lowest since the removal of the rate cap, contrasts with the Central Bank of Nigeria’s efforts to settle backlogs of matured foreign exchange obligations

Eko Hot Blog reports that data from the FMDQ Securities Exchange has revealed that the naira fell to N1089.51/$ on the official Investor and Exporter window on Tuesday by 27.19 per cent from the N856.57/$ it closed on Monday, according to data from the FMDQ Securities Exchange.

On Tuesday, the naira opened trading at N922.22/$, rose to a high of N1251/$ and low of N720/$ before closing at N1089.51/$, bringing the total forex turnover on the day to a total of $97.45m.

This is the fourth time the naira will close below N1,000 on the official window.

On December 8, 2023, the naira fell to an all-time low of N1,099.05/$, while on December 28, 2023, it closed trading at N1043.09/$ and on January 3, 2024, the national currency closed at N1035.12/$.

Tuesday’s N1089.51/$ is said to be the second lowest the naira has closed on the official FX window since the Central Bank of Nigeria removed the rate cap of the currency.

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The naira’s continued decline is despite the apex bank’s effort to clear backlogs of matured foreign exchange obligations to the Deposit Money Banks. Recently, the CBN stated that it has paid $2bn as part of its backlog obligations.

According to reports, it is estimated that the bank is owing $7bn as forward contract obligations, as the CBN disclosed this when it revealed that it has disbursed $61.64m to foreign airlines as part of matured foreign exchange owed to them.

The CBN Acting Director of Corporate Communications, Hakama Alia, in his words said,

“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, to alleviate the current pressure on the country’s exchange rate.
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira hug against other major world currencies and further increase investor confidence in the Nigeria economy.”

In addition, the current depreciation of the naira against the dollar is right in the face of the government’s renewed effort to boost liquidity in the foreign exchange market.