Naira Exchange Rate to US Dollar Improves in One Month Despite 46% Drop in FX Transactions
- The value of the Naira recorded a positive performance against the US dollar in the month of April
- Naira's performance was both at the official and unofficial foreign exchange markets
- This happened despite a 46 percent drop in forex turnover at the investor's and exporters' window
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Nigeria's legal tender, the Naira, appreciated against the dollar in the month of April on the official and black forex markets.
At the official market's investors and exporters window, the Naira, recorded a marginal gain of 0.10% against the US dollar.
According to data from FMDQ, the Naira started April 2023 with an exchange rate of N463.50 against the US dollar on Monday, April 2, 2023 the lowest level it had officially reached against US dollar.
After experiencing fluctuations for several days, the Naira closed the month on Friday, April 30, at N463.00, representing a marginal improvement of 0.10%.
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Naira performance against dollar at unofficial market
It was a better performance at the black market as the Naira closed the month of April at N739/$1, which represents a significant improvement from N752/$ it kicked off the month.
Dollar supply at the official market
The Naira's good performance against the US dollar in April 2023 was notable, especially given the decrease in forex transactions.
Vanguard reports that FMDQ Securities data showed participants at the Investors and Exporters (I&E) window, the official market recorded 46% drop in trade month-on-month (MoM) to $1.4 billion in April 2023 from $2.6 billion in March.
This contradicts the sharp increase in March when the I&E turnover rose by 52.9 percent from $1.7 billion in February 2023.
Nigerian Breweries blames CBN
Meanwhile, in another report, Nigerian Breweries disclosed that it experienced a decline in revenue of N10.71 billion in its Q1 2023 financial result.
The NB board attributed the drop in revenue to several challenges, including CBN's naira redesign policy.
The CBN announced the withdrawal of the old 1000, 500, and 200 naira notes in February, which led to a severe cash scarcity.
Source: Legit.ng
