1,183% Jump in FX Demand Weakens Naira by 0.06% at I&E

By Adedapo Adesanya

The Naira fell by 25 kobo or 0.06 per cent at the Investors and Exporters (I&E) segment of the foreign exchange market on Thursday, October 22 as the domestic currency ended the day at N386/$1 in contrast to N385.75/$1 it was sold previously.

This happened as the demand for forex increased significantly at the segment as fears seemed to have subsized following development across the country.

According to data from the FMDQ Securities Exchange, transactions valued at $77.62 million were carried out at the window yesterday in contrast to the $6.05 million exchanged at the midweek session, indicating a rise of 1,182.9 per cent or $71.57 million.

This showed that investors are still treading cautiously to observe the market before taking a decision as a result of happenings in the country lately. It is expected that the broadcast by President Muhammadu Buhari will calm the nerves.

Yesterday at the parallel market, the Naira retained its previous quoted exchange rate against the Dollar to sell at N463/$1 while the local currency’s performance against the Pound remained at N592/£1 and it maintained stability against the Euro at N540/€1.

At the Bureaux De Change (BDC) segment of the market, data from the Association of Bureaux De Change Operators of Nigeria (ABCON) showed that the value of the Nigerian currency remained flat against the American currency at N386/$1 at the major locations tracked.

At the interbank window of the forex market, the Naira/Dollar exchange rate remained unchanged at N379/$1 at the close of transactions yesterday.

In a related development, according to data sourced from Quidax, a platform used for trading cryptocurrencies in Naira in Nigeria, the rates of the four digital currencies monitored by Business Post on Thursday appreciated.

The value of the Bitcoin (BTC) appreciated by 2.07 per cent to sell at N5.9 million, the Ethereum (ETH) recorded the highest jump of 6.55 per cent to close at N192,371, the value of the Ripple (RPX) improved by 0.25 per cent to N118.49, while the value of Litecoin (LTC) went up by 1.76 per cent to settle at N25,400.