The naira on Tuesday strengthened its position against the dollar, trading at N791.42 at the Investors and Exporters (I&E) window. This represents a 0.08 per cent increase compared with N792.04, which it traded for the dollar on Monday.
The I&E window is a foreign exchange market where buyers and sellers of foreign currency can trade freely based on market forces. It was introduced by the Central Bank of Nigeria (CBN) in 2017 to improve liquidity and transparency in the forex market.
The open indicative rate, which is the average of all trades executed on the I&E window, closed at N779.50 to the dollar on Tuesday. This means that the naira appreciated by 1.49 per cent from its opening rate of N791.00 to the dollar.
However, the naira experienced some volatility during the day’s trading, reaching a high of N845 to the dollar and a low of N730 to the dollar. The high and low rates indicate the maximum and minimum prices that buyers and sellers agreed to trade at the I&E window.
On Tuesday, a total of $51.55 million was traded at the I&E window, according to data from FMDQ Securities Exchange. This shows a slight decline from $52.93 million traded on Monday.
The naira’s performance at the I&E window reflects the demand and supply dynamics of the forex market, as well as the interventions of the CBN. The CBN has been injecting foreign exchange into various segments of the market to support the naira and ease pressure on businesses and individuals.
The appreciation of the naira against the dollar is a positive development for the Nigerian economy. It makes it cheaper for importers to bring goods into the country, which could help to boost economic growth.
However, it is important to note that the naira is still under pressure from a number of factors, including the high cost of oil imports and the ongoing political uncertainty in the country. As a result, it is possible that the naira could depreciate against the dollar in the future.
