Naira Sells at N400/$1 at Parallel Market

By Adedapo Adesanya

The Naira exchanged at N400 per Dollar at the parallel market segment of the foreign exchange market on renewed panic on Thursday, March 12, 2020.

The Naira/Dollar rate, which stood at N375 on Wednesday, spiked to N400 yesterday after a depreciated of N25 amid worries surrounding the future of the domestic currency over global outcomes like dwindling oil prices and the spread of the coronavirus.

At the same segment, the local currency depreciated by N5 against the British pound sterling to sell at N490/£1 compared with N485/£1 a day earlier, while on the Euro, it depreciated by N2 to quote at N414/€1 in contrast to the previous day’s N412/€1.

At the Bureaux De Change (BDC) segment, operators sold the Naira to customers in Lagos at N382/$1 compared with N365/$1 it was sold on Wednesday, resulting into a depreciation of N17. Data obtained by Business Post from the Association of Bureaux De Change Operators of Nigeria (ABCON) on Thursday showed that the domestic currency depreciated by N16 against the British Pound to N490/£1 from N474/€1, but gained N8 against the Euro to close at N408/€1 in contrast to the previous session’s N416/€1.

At the Abuja BDC market, the local currency was exchanged against the greenback at N384/$1 against N368/$1, indicating a N16 loss. Against the Pound, it dropped N5 to close at N487/£1 compared to N482/£1 recorded on Wednesday and against the Euro, depreciated by N3.50 to N418/€1 from N414.50k/€1.

BDC operators in Port Harcourt traded a Naira to the Dollar at N381/$1 yesterday compared with N365$1 it was exchanged on Wednesday, representing a decline of N16. The Naira depreciated by N76 against the British currency to N489/£1 from N413/£1, and depreciated by N63 on the Euro to N480/€1 from N417/€1.

At the Kano BDC market, the Thursday session saw a N15 deprecation of the local currency against the US Dollar, trading at N380/$1 in contrast to N365/$1 it was quoted on Wednesday. It fell by N5 against the Pound to N475/£1 from N470/£1 and lost N3 on the Euro to N417/€1 from N414/€1.

Business Post gathered from the FMDQ Securities Exchange that the Naira depreciated by 1.5 percent or N5.67 against the Dollar at the Investors and Exporters (I&E) window to sell at N374/$1 in contrast to the previous day’s N368.33/$1.

This was as the daily market turnover increased by 48 percent or $50.4 million to $156.42 million from $106.04 million during the session, causing the domestic to come under pressure.

At the official window of the Central Bank of Nigeria (CBN), the exchange rate remained unchanged against the American currency on Thursday at N306.95/$1.