Dollar Weakens to N361 at Interbank Window

Dollar scarcity

By Dipo Olowookere

The exchange rate of the Naira to the Dollar at the foreign exchange market in Nigeria closed in mixed directions at the various segments on Tuesday.

While it deteriorated at interbank segment of the market, it appreciated at the parallel market, Investors and Exporters’ (I&E) and the Bureaux De Change (BDC) windows.

Business Post reports that the Naira/Dollar exchange rate closed N1 lower in favour of the American currency at the Central Bank of Nigeria (CBN) window yesterday, trading at N361/$1 in contrast to N360/$1 it was sold on Monday.

However, the local currency appreciated by 0.06 percent or 22 kobo against the Dollar at the I&E segment to sell at N380.53/$1 compared with N380.75/$1 it went for the previous session.

This followed the 8.68 percent or $5.34 million decline in the value of transactions recorded at the market segment on Tuesday. Trades valued at $56.20 million occurred at the investors’ window during the session as against the previous day’s $61.54 million.

The global coronavirus pandemic has reduced the request for forex by customers. As at Wednesday morning, the total number of COVID-19 cases in Nigeria has risen to 46.

At the black market, The Nigerian currency appreciated by N3 against the Dollar to N400/$1 from N403/$1 and traded flat against the Pound Sterling and the Euro at N485/£1 and N415/€1.

At the BDC market in Lagos, traders sold the Dollar at N400 on Tuesday compared with N403 on Monday. The Pound was exchanged at N493 versus N485 at the last session and traded the Euro at N413 in contrast to N415.

At the Abuja BDC market, the Naira depreciated by N9 against the United States Dollar to N397/$1 from N388/$1 and traded flat against the British currency at N475/£1, but lost N1 on the Euro by N1 to sell at N413/€1 as against N412/€1 it was sold on Monday.

In Kano, operators sold the Dollar at N395 yesterday as against N388 it went for the previous day and lost N5 against the Pound to N480 from N475 and also fell by N5 to N417 from N412.

At the Port Harcourt BDC market, the local currency traded flat against the Dollar, Pound Sterling and Euro at N390/$, N484/£1 and N414/€1 respectively.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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