- 5th May 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS, FUNDAMENTAL ANALYSIS, TECHNICAL ANALYSIS
CBN intervenes in the foreign exchange market, the local currency, naira, on Monday May 4, 2020, appreciated against the dollar
Published 5 hours ago
on May 5, 2020
As the lockdown gradually eases off and the Central Bank of Nigeria (CBN) intervenes in the foreign exchange market, the local currency, the naira appreciated against the dollar at the Investors and Exporters (1 & E) foreign exchange window.
Available information from the FMDQ shows that the naira strengthened against the dollar by N1.33, closing at N384 to a dollar as against the N385.33 to a dollar that it opened with.
Further analysis of the information on FMDQ shows that the foreign exchange daily turnover declined to $28.23 million on Monday as against the $83.41 million that it was on Thursday last week. This represents a 66.16% decrease.
There appears to be an improvement of liquidity in the foreign exchange market, as the CBN makes more dollars available to end-users.
In anticipation of the easing of lockdown directives by Government and partial resumption of businesses on May 4, the CBN on Wednesday last week announced the resumption of sales of dollars for SMEs and school fees for students studying outside the country.
As was reported earlier by Nairametrics, the Naira also appreciated at the parallel market, selling at N430 to a dollar on Monday, as against the N450 to a dollar it sold last week Friday.
The I & E foreign exchange window, which was established by the CBN in April 2017, is the market trading segment for investors, exporters, and end-users that allows for foreign exchange trades to be made at exchange rates based on prevailing market circumstances.