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Naira begins recovery after float, closes at N664/$ at I&E window

 


The naira closed at N664.04 per dollar at the investors and exporters (I&E) window on Wednesday.

 

Earlier in the day, the local currency was initially quoted between N750 and N755 per dollar before appreciating to close at N664.04 to the greenback.

 

The I&E foreign exchange (FX) window is the country’s official exchange rate trading platform. It is a segment for investors, exporters, and end-users, which allows for FX trades to be made at exchange rates determined based on prevailing market realities.

 

According to data from FMDQ OTC Securities Exchange, the local currency opened at N471.67 to the dollar, depreciating to N755 after the float, then recovering to N664.04 at the close of business.

 

The closing rate represents a day-on-day depreciation of 40.8 percent from the N471.67 traded at the I&E window on Tuesday.

 

The development comes after the Central Bank of Nigeria (CBN) officially floated the naira and directed commercial banks to sell forex freely at market-determined rates.

 

For the first time in years, the local currency was allowed to trade at a rate determined by market forces.

 

However, checks by 7:51 pm on Wednesday showed that the CBN website did not reflect the FMDQ rates.

 

The I&E column on the CBN website still showed N463.38 per $1, the official rate as of June 9.

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