By Adedapo Adesanya
Despite a large demand for the dollar at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Thursday, July 2, 2020, the Naira was able to close stronger.
Business post reports that the local currency appreciated by 50 kobo or 0.13 percent against the US Dollar during the day to sell at N386/$1 in contrast to N386.50/$1 it sold on Wednesday.
According to data on the FMDQ Securities Exchange, the demand for the greenback spiked by 1,876.4 percent or $194.58 million as transactions worth $204.95 million occurred at the market segment compared with Wednesday’s $10.37 million.
This high demand could be attributed to the current projection made by Fitch that Nigeria was facing foreign currency liquidity pressures, a major source of worry.
On Wednesday, Fitch also warned that banks in the country may experience forex challenges this year because of low inflows as a result of the COVID-19.
Meanwhile, at the parallel market, the Naira gained N1 against the US Dollar to trade at N461/$1 in contrast to the previous day’s N462/$1. The domestic currency also appreciated against the Euro by N3 to sell at N502/€1 versus N505/€1. However, the local currency closed flat against the Pound to trade at N560/£1.
At the Bureaux De Change (BDC) segment of the forex market, it was gathered from the Association of Bureau De Changers Operators of Nigeria (ABCON) that in Lagos, the Naira depreciated against the Dollar by 50 kobo to trade at N458/$1 compared with Wednesday’s rate of N457.50/$1.
However, against the Pound, the local currency close flat at N567/£1, but gained 50 kobo on the Euro to trade at N502/€1 versus N502.50/€1.
At the Abuja BDC market, the domestic currency dropped N4 against the Dollar to sell at N459/$1 in contrast to the previous day’s N455/$1. Against the Pound, the Naira gained N5 to close at N550/£1 compared with N555/£1 and against the Euro, it appreciated by N10 to close at N500/€1 versus N510/€1.
But in Port Harcourt, the local currency depreciated by N1.50 against the US Dollar to close at N457 as against N455.50/$1 of the previous session and lost N5 against the Euro to trade at N495/€1 versus N490/€1, but closed flat against the Pound at N550/£1.
At the Kano market, the Nigerian currency remained static against the Dollar, Pound and the Euro at N456/$1, N540/£1 and N490/€1 respectively.
At the interbank segment, the value of the Naira to the Dollar remained unchanged at N361/$1 yesterday.
Dipo Olowookere