Dollar Scarcity Pushes Naira to N364.98/$1 at I&E

Dollar scarcity

By Adedapo Adesanya

Activities of investors at the final session for the week drove exchange rate higher for the third consecutive day at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Friday, January 3, 2020.

The Nigerian Naira depreciated to nearly N365 per Dollar at the session when the forex dealers could not get enough Dollars to meet the huge demand of customers.

The short scarcity contributed to the local currency spiking to N364.98/$1 against the greenback at the window from N364.79/$1 it was exchanged at the same segment on Thursday. This indicated that the value of the domestic currency went down against the American currency by 19 Kobo 0.05 percent.

According to data obtained by Business Post from FMDQ Securities Exchange, the value of transactions recorded at the investors window significantly increased by 1,410 percent or $268.58 million.

Transactions worth $287.63 million were achieved during the Friday’s session compared with $19.05 million recorded during the previous session on Thursday, data from FMDQ showed.

At the interbank segment of the forex market yesterday, the Naira further closed flat at N307/$1. The local currency also traded unchanged against the Dollar at N362 at the parallel market.

In the same vein,the Nigerian Naira remained unchanged against the British Pound Sterling and the Euro at the black market on Friday, trading at N473 to a Pound Sterling and N400 per Euro.

At the Bureaux De Change (BDC) window, the Naira depreciated by 50 kobo to N362 per Dollar on Friday from N361.50/$1 it went for on Thursday in Lagos.

It also lost 50 kobo in Port Harcourt yesterday to trade at N360.50/$1 at the same segment in contrast to N360/$1 it quoted the previous day, while it went down by N1 against the greenback at the BDC segment in Abuja to settle at N363 to one Dollar from N362/$1 and the traded flat at N361/$1 in Kano.

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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