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Naira Depreciates Against Dollar, Reaches N464.67 at Investors' and Exporters' Window

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Justice Nwafor
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Naira Depreciates Against Dollar, Reaches N464.67 at Investors' and Exporters' Window <br> Image Credit: Open Source
The Naira witnessed a depreciation against the dollar on Tuesday as it exchanged for N464.67 at the investors' and exporters' window. This represents a decrease of 0.14% when compared to the exchange rate of N464 on Monday. The open indicative rate closed at N463.96 to the dollar on Tuesday, reflecting the continued decline of the Naira.
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Spot Exchange Rate and Trading Activity

During the trading day, a spot exchange rate of N467 was initially used for transactions before settling at N464.67. The spot exchange rate is determined instantly, allowing for real-time valuations of currencies. Interestingly, the Naira experienced fluctuations throughout the day, with it selling for as low as N460 to the dollar at one point.
The official Investors' and Exporters' window recorded a total turnover of $127.72 million in trading. This signifies the level of activity and volume of transactions within the window. Despite the depreciation of the Naira, market participants remain engaged in foreign exchange activities.

The implications

The devaluation of the Naira against the dollar has implications for various sectors of the economy. Importers may experience higher costs as they convert foreign currencies into Naira to pay for goods and services. It also affects investors who hold assets denominated in foreign currencies, as the value of their investments in Naira terms decreases. However, sectors such as export-oriented businesses may benefit from the depreciation, as their products become relatively cheaper in foreign markets.
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