The Nigerian currency, Naira, ended the month of June with a slight depreciation against the US dollar at the Investors and Exporters (I&E) window.
According to data from FMDQ Securities Exchange, the Naira closed at N769.25 to a dollar on Friday, June 30, 2023, a 0.82% drop compared to N763 to a dollar on Tuesday, June 27, 2023.
According to a recent report by Bank of America analysts, the Nigerian naira has undergone a significant shift in its valuation after the foreign exchange reform that enabled the naira to float freely. The report, dated June 28, stated that the naira has changed from being overvalued to undervalued, implying a potential for appreciation in the future.
The daily currency update tracked and compiled from FMDQ Exchange according to Nairametrics, a leading financial news platform in Nigeria, revealed that the naira experienced a significant depreciation against the dollar on Monday, as it opened at N758.56 and closed at N769.25.
The naira also fluctuated within a wide range of N461.50 and N841 to a dollar during the day, indicating high volatility in the currency market.
The foreign exchange market witnessed an increase in its daily turnover on Wednesday, as it reached $263.45 million, up by 7.25% from the previous day’s figure of $245.65 million.
According to the Central Bank of Nigeria (CBN), the country’s foreign exchange reserves experienced a slight decrease on Tuesday, 27th June 2023, dropping from $34.22 billion on Monday to $34.19 billion. This represents a 0.09% decline in the external reserves, which are vital for maintaining the stability of the naira and facilitating international trade.
The black-market exchange rate of the Naira to the US Dollar remained unchanged at N770/$1, according to BDC traders’ reports. This was the same rate as the previous day’s trading session, indicating a stable trend for the Naira.
Similarly, the Naira maintained its value against the Euro, exchanging at an average rate of N840/€1 on June 30, 2023, showing no change from the previous day’s session.
On June 30, 2023, the Naira gained value against the British Pound, closing at an average rate of N995/£1. This was a 0.50% improvement from the previous day, when the Naira exchanged at N1000/£1.
The FX rate for cryptocurrency P2P Exchange market showed a marginal increase of 0.04% on Friday 30, June 2023, closing at N773.29/$1. This was a slight improvement from the previous trading session, when it was N773.61/$1.
The debt market size of the exchange increased slightly to N38.44 trillion on Friday 30th June 2023, compared to N38.52 trillion on Tuesday 27th June 2023.
The Money market overnight rate, which reflects the cost of borrowing funds for one day, dropped to 2% on Friday 30th June 2023. This was a decrease of 14 basis points compared to the rate of 2.14% on Tuesday 27th June 2023, while the Open Repo rate, which measures the cost of borrowing short-term funds, remained unchanged at 1.36% in the latest trading session, indicating that the liquidity conditions in the market were stable. (Nairametrics)
