The local currency, naira, appreciated marginally against dollar at the Investors and Exporters’ (I&E) window yesterday, closing at N411.13/$1 compared with N412 per dollar on Tuesday, FMDQ data shows. On Monday, naira had closed at N411.88/$1 at the I&E window, weaker than N411 per dollar last Friday.
In the wake of naira’s weakening to N410.25 per dol-lar at the I&E window on December 31, last year, analysts predicted that another devaluation of the local currency was imminent. Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, said last year that the apex bank would pursue exchange rate unification around the I&E window rate. In a recent report, analysts at FBNQuest forecast an average I&E/NAFEX rate of N419 per dollar at the end of this year. The analysts said that although they expected a combination of higher oil revenue, multilateral loans and Eurobond sales should underpin reserves this year and allow the Central Bank of Nigeria (CBN) to contain naira exchange-rate depreciation, the forecast for average I&E/NAFEX rate is N419 per USD at end-2021.
Meanwhile, naira was unchanged at N484 per dollar on the parallel market yesterday. The local currency fell to N484/$1 on Tuesday from N482/$1 on Monday, according to data obtained from abokifx.com. In a bid to incentivise the inflow of diaspora remittances and boost the external reserves, the CBN at the weekend announced in a circular to all banks and International Money Transfer Operators (IMTOs) that recipients of diaspora remittances shall receive N5 for every $1 received.