Naira Loses Value Against Dollar at BDC Segment

By Adedapo Adesanya

The Naira depreciated against the American Dollar across all the major locations in the country at the Bureau De Change (BDCs) segment of the foreign exchange market on Tuesday, March 31, 2020.

According to data collated by Business Post from the Association of Bureaux De Change Operators of Nigeria (ABCON), the domestic currency lost 50 kobo against the greenback at the Lagos BDC market to close on Tuesday at N413.50/$1 in contrast to N413/$1 it traded on Monday. But against the British Pound and the Euro, it traded flat at N500/£1 at N420/€1 respectively.

At the Abuja BDC market, the local currency slipped against the US Dollar by N4 to N411/$1 from N407/$1 and lost N20 against the Pound to sell at N500/£1 compared with the previous N480/£1 rate and fell by N4 against the Euro to N413/€1 from N417/€1.

In Kano, the Nigerian currency was weakened by N5 against its American counterpart to N410/$1 from N405/$1, while it remained unchanged against the Pound Sterling at N495/£1 and against the Euro at N417/€1.

Due to the N6 depreciation it suffered yesterday against the Dollar, BDC operators in Port Harcourt exchanged the Naira at N409/$1 compared with N403/$1 it was traded on Monday. However, they maintained the previous exchange rate for the Naira/Pound at 495/£1, while the Naira/Euro exchange rate was N413/€1 compared with Monday’s 414/€1.

At the Investors and Exporters (I&E) segment of the forex market, the Naira was strengthened against the Dollar by N6.63 or 1.69 percent on Tuesday, spurred by relatively low demand for the forex amid travel restrictions in two major cities of the country, Lagos and Abuja.

After depreciating to N392.18/$1 at the segment on Monday, the local currency appreciated to N385.55/$1.

According to data sourced by Business Post from FMDQ Securities Exchange, transactions worth $79.9 million were carried at the session, though higher than the previous day’s $34.4 million. This showed a 132 percent or $45.5 million spike in the total turnover for the day at the I&E window.

At the interbank segment of the market, which is the official exchange rate window for government transactions, the local currency traded flat against the United States currency at N361/$1.

At the parallel market yesterday, the domestic currency recorded no movement against the US Dollar, Pound and the Euro as it maintained the previous rates of N415/$1, N490/£1 and N420/€1 respectively.