Forex Crisis Worsens as Pound Sells for N604

Forex Demand

 By Adedapo Adesanya

The foreign exchange crisis continued to hit hard as the Naira further depreciated against the Pound Sterling on Thursday, August 6, 2020.

At the Bureau De Change (BDC) segment of the foreign exchange market in Abuja, the local currency depreciated against the British currency by N14 to close at N604/£1 as against the previous day’s rate of N590/£1.

But against the Dollar, the local currency closed flat at 474/$1 and lost N5 on the Euro to close at N550/€1 versus N545/€1 at the last session.

At the Port Harcourt market, the domestic currency dropped N13 against the Pound to N600/£1 from N587 while it dropped N1.50 against the greenback to close at N472.50/$1 compared to N471/$1 it closed on Wednesday and depreciated by N5.50 on the Euro to N542.50/€1 from N537/€1.

In Lagos, the local currency made no movement against the Pound, closing at N601.50/£1 and also remained unchanged against the Dollar and the Euro at N473/$1 and N545/€1 respectively.

In Kano, the local currency traded flat against the Dollar, Pound and Euro on Thursday to close at N472/$1, N575/£1 and N540/€1 respectively.

At the black market, the Naira lost N5 against the Pound to sell for N600/£1 as against the previous day’s rate of N595/£1, but closed flat against the Dollar and Euro at N474/$1 and N545/€1 respectively.

It was, however, a different outcome to the exchange rate of the Naira/Dollar at the Investors and Exporters (I&E) market. The local currency appreciated by N3.75 or 0.96 per cent to close at N385.50/$1 compared to the previous day’s N389.25/$1.

At the same market segment, it was observed that there was a rush for the American dollar as demand rose by 916.8 per cent or $96.17 million to $106.66 million from $10.49 million on Wednesday.

At the interbank window of the market, the official exchange rate of the Naira/Dollar closed at N381/$1, the same rate it was sold at the midweek session.

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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