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FX Liquidity Crisis Crashes Naira to N467/$1 at Black Market

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By Adedapo Adesanya

The renewed pressure faced by the Naira showed no sign of easing anytime soon at the black market on Wednesday, September 23.

At the segment of the foreign exchange (FX) market yesterday, the Naira depreciated against the Dollar by N2 to close at N467/$1 compared with N465/$1 it traded on Tuesday as a result in the shortage of forex to meet the demands of customers.

At the same market window, the domestic currency, however, closed flat against the Pound at N600/£1 but appreciated by N1 on the Euro to N545/€1 from N546/€1.

At another market segment, the Bureaux De Change (BDC), the Nigerian currency lost N2 against the greenback in Lagos to trade at N465/$1 versus N463/$1, but appreciated by N3 against the British Pound Sterling to sell at N600/£1 versus N603/£1 and remained unchanged against the Euro at N547/€1.

In Abuja, according to data obtained by Business Post from the Association of Bureaux De Change Operators of Nigeria (ABCON), the local currency closed flat against the American currency at N466/$1. It was also flat against the Pound and Euro on Wednesday at N596/£1 and N547/€1 respectively.

At the Port Harcourt BDC market, the value of the domestic currency against the Dollar, Pound and Euro remained unchanged at the close of the midweek trading session at N464/$1, N595/£1 and N542/€1 respectively.

It was a similar situation at the Kano BDC market, where the Naira traded flat against the Dollar, Pound and Euro at N464/$1, N598/£1 and N548/€1 respectively.

But at the Investors and Exporters (I&E) window of the forex market, the Nigerian currency depreciated by 20 kobo or 0.05 per cent against its United States counterpart to N386/$1 from N385.80/$1.

This was caused by the 135.3 per cent or $39.8 million rise in the demand for FX at the segment to $69.22 million from $29.42 million the previous day.

However, at the interbank segment of the market on Wednesday, the exchange rate of the Naira to the Dollar remained static at N379/$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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