The Nigerian currency(Naira) bounced back at the official market against the United States dollars despite a significant increase in the demand for foreign currencies.
Data obtained from FMDQ securities showed that the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Tuesday, September 21, 2021 closed at N413.28/$1.
This represents a 40 kobo or 0.10 per cent gain against the greenback yesterday when compared to the N413.68/$1 it closed on Monday.
During the trade, a turnover of $200.65 million was recorded at the session as against the $91.23 million achieved at the preceding day, indicating a surge of $109.42 million or 119.9 per cent.
The local currency, naira was able to withstand the pressure because of the sufficient supply of FX to the market by the Central Bank of Nigeria (CBN) which is making efforts to stabilise the space.
Meanwhile, the Central Bank of Nigeria has revealed that in an effort to defend the Naira in April, the country’s external reserves depleted by 2.4 percent in April 2021.
CBN in its latest economic report for April, noted that the decline in inflow constrained foreign exchange market liquidity and exacerbated demand pressure hence the need for intervention in the forex market.