Naira Depreciates at Interbank Forex Market to N307/$

By Adedapo Adesanya 

The Naira depreciated against the US Dollar at the official window of the Central Bank of Nigeria (CBN) also known as the interbank segment of the foreign exchange market on Tuesday, March 17, 2020.

The value of the local currency was weakened by 5 Kobo or 0.02 percent against the American currency to N307/$1 from N306.95/$1 it traded on Monday.

It marked the first time the rate would change since the crash of oil prices that sparked talks of a possible devaluation of the Nigerian Naira, which the apex bank quenched last week.

However, at the parallel market yesterday, the Naira maintained stability against the Dollar, Pound Sterling and the Euro at the close of business, trading at N380/$1, N490/£1 and N415/€1 respectively.

At the Bureaux De Change (BDC) segment, the local currency gained N1.50 against the greenback at the Lagos BDC market to sell at N376.50/$1 compared with N378/$1 it traded on Monday. It, however, traded flat against the Pound and Euro at the market at N490/£1 and N415/€1 respectively.

In Abuja, the domestic currency depreciated by N3 against the greenback to trade at N375/$1 in contrast to N372/$1 it was sold at the previous session. Against the British currency, the Naira lost N2 to close at N490/£1 against N488/£1 of the previous day, but traded flat on the Euro at N415/€1.

At the Port Harcourt BDC market, the Naira fell by N1.50 to N376.50/$1 from N375/$1. It also declined by N12 against the Pound to N490/£1 from N478/£1 and lost N9 on the Euro to N415/€1 from N409/€1.

Meanwhile in Kano, the local currency traded flat against the three major foreign currencies; the Dollar, Pound Sterling and the Euro at N369/$1, N480/£1 and N417/€1 respectively.

A look at the Investors and Exporters (I&E) window indicated that yesterday, the Naira further appreciated against the Dollar by 21 kobo or 0.06 percent to N367.57/$1 from N367.78/$1.

This was boosted by lower demand for forex at the market segment. Transactions worth $143.33 million were carried out at the I&E window on Tuesday, lower than Monday’s $295.58 million by 52 percent or $152.25 million.