Exchange rate gains as forex turnover records boost

Today’s exchange rate between the Naira and the US dollar closed at N416 per dollar.

This represents an increase of 1.2% on the previous day’s rate. The Naira has continued to strengthen against the dollar since June 19. However, the Naira has weakened against the dollar in the unofficial market, closing at N446 today.

On Friday, the Nigerian currency continued its upward movement against the US dollar, appreciating marginally to close at N416 per dollar. This represented a 0.08% gain compared to the N416.33 recorded in the previous session.

The upward movement of Naira resulted from the improvement in sentiment regarding the economy and the current political situation. Increased oil production and exports from the nation supported the currency.

Overview of the Exchange-traded currency market

The exchange-traded currency market, also known as the secondary market, saw a significant spike in activity on Friday. Forex turnover at the secondary market increased by 57.5% to $142.42 million compared to $90.42 million that exchanged hands on Thursday.

The most traded currency pairs on the secondary market were EUR/USD and GBP/USD. The former was the most traded currency pair on the secondary market on both Thursday and Friday.

The exchange rate at the P2P market fell by 0.09% on Monday morning, trading at a minimum of N579.5/$1 compared to N579/$1 recorded as of the close of trading activities on Friday. The Naira has been on a downward trajectory against the dollar since the beginning of the year, recording its most significant single-day drop since December 2018 on Friday.

The Naira closed at N551.5/$1 on Friday, the lowest level since December 2018. The CBN has not yet commented on the latest exchange rate movements at the P2P market.

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