Apprehension as Naira Hits N366.31/$1 at I&E FX Window

By Adedapo Adesanya

The possible devaluation of the Nigerian Naira is already getting clearer and the recent decline in the value of the local currency against the United States Dollar is causing apprehension at the foreign exchange (FX) market in the country.

At the midweek session, the domestic currency further depreciated by 30 kobo against the US Dollar at the Investors and Exporters (I&E) segment of the market. It was the third time this week that the Naira depreciated against the greenback at the FX window.

Business Post reports that after depreciating to N366.01/$1 at the I&E segment on Tuesday, the local currency saw another unfavourable change, losing 30 kobo or 0.08 percent to close at N366.31/$1.

However, the pressure on the demand for forex reduced yesterday by 83 percent rise or $973.81 million as transactions worth $195.50 million occurred at the market segment compared with $1.2 billion of the previous session.

At the Bureaux De Change (BDCs) segment of the market, the Nigerian currency moved in different directions at the four key locations in the country.

At the Abuja BDC market, the local currency gained 10 kobo against the American currency to close at N357.80/$1 compared with the previous day’s N358.70/$1, while it appreciated against the pound by N1 to trade at N471/$1 in contrast to N472/$1 and shed N1 against the Euro to sell at at N393/€1 against N392/€1 it was exchanged on Tuesday.

However, at the Lagos BDC market, the domestic currency lost 30 kobo against the Dollar to close at N358.50/$1 compared with N358.20/$1 that it traded previously. The Naira depreciated by N3 against the Euro to N395/€1 from N392/€1, and closed flat on the British pound at N470/£1.

At the Kano BDC market, the Naira/USD rate remained unchanged against the Dollar at N358/$1. It also traded flat against the Pound Sterling and the Euro at N472/£1 N395/€1 respectively.

It was not different at the Port Harcourt BDC market, where the local currency remained unchanged against the US Dollar, Pound and Euro at N358/$1, N475/£1 and N397/€1 respectively.

At the parallel market, the domestic currency remained static against the US Dollar at N360/$1 and the British currency at N473/£1, but depreciated by N2 against the Euro to N394/€1 from N392/€1.

At the official window of the Central Bank of Nigeria (CBN) also known as the interbank segment, the local currency traded flat against the greenback at the midweek session at N307/$1.