TheCable

The value of foreign exchange (Forex) transacted in the investors’ and exporters’ (I&E) window of the official market increased by 1,302.8 percent on Thursday.

In monetary terms, this represents an increase of $378.6 million in daily supply, as data obtained from FMDQ Exchange disclosed that the forex transaction closed at $407.66 million.

This is a significant increase compared to the $29.06 million in forex traded by the official market’s authorised dealers and their clients on Wednesday.

The increase in supply was accompanied by a hike in the dollar rate, as the naira weakened to N764.86 on Thursday, depreciating by 0.74 percent from the previous day’s N759.20.

Investors and exporters saw an increase in forex supply after the Central Bank of Nigeria (CBN) announced on Thursday that it will be selling forex to the official market from time to time.

“As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease,” the apex bank said in a statement.

The increase in forex supply is also linked to the CBN’s effort to clear the backlog of FX, which Yemi Cardoso, the CBN governor, said is contributing to the depreciation of the naira.