Dollar Remains at N460 at Black Market, N458 at BDC

strong dollar demand Naira

By Adedapo Adesanya

The Naira had its exchange rate to the US Dollar further battered on Tuesday, June 30, 2020, at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market.

According to data from FMDQ, the domestic currency was further weakened at the market window by 0.13 percent equivalent to 50 kobo to close at N386.50/$1 compared to N386/$1 it was traded on Monday.

This poor performance of the local currency against the greenback came despite a significant decline in the demand for the foreign currency at the market segment created for investors to purchase Dollar at a rate close to the official exchange rate.

There was an 88.3 percent or $108.5 million reduction in the value of trades witnessed at the I&E yesterday. Transactions worth $14.37 million was carried out during the session as against the previous day’s $122.89 million.

At the Bureaux De Change (BDC) segment of the market, according to data from the Association of Bureau De Change Operators of Nigeria (ABCON) and harvested by Business Post, the Naira/Dollar exchange rate at the Lagos BDC market remained flat at N458/$1 on Tuesday.

However, the domestic currency dropped N4 against the Pound to trade at N567/£1 versus N563/£1 while on the Euro, it gained N2 to close at N502/€1 as against at N504/€1.

In Abuja, the local currency exchange rate closed flat against the Dollar at N440/$1, also remaining unchanged against the Pound and the Euro at N561/£1 and N504/€1 respectively.

But at the Port Harcourt BDC market, the Naira gained N2.50 against the Dollar to close at N455/$1 versus N457.50/$1 and strengthened by N5 against the pound to N550/£1 from N555/£1, while against the Euro, the Nigerian currency gained N5 to close at N495/€1 in contrast to Monday’s rate of N500/€1.

At the BDC market in Kano, the Naira closed flat against the Dollar, Pound Sterling and Euro at N456/$1, N540/£1 and N490/€1 respectively.

A look at the interbank segment of the market indicated the local currency traded flat against the American Dollar at the segment to close at N361/$1.

Activities at the parallel market showed that the Naira maintained its stability against the Dollar, trading at N460/$1, while against the Pound and the Euro, the domestic currency also remained unchanged at N560/£1 and N505/€1.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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