Investors React to Forex Hold on Milk Imports as Market Turnover Rises 40%
By Adedapo Adesanya
Investors in Nigeria might be pulling out more than they are investing as this was evident in the volume of daily market turnover at the Investors window of the foreign exchange market on Wednesday.
Business Post gathered that total market turnover was 40 percent more than what was sold in the previous day as a total of $268.37 million was recorded on Wednesday against $191.19 recorded on Tuesday.
This may have risen as a result of economic policies been pushed by Federal Government the stringent measures to restrict forex to importers of milk into the country.
At the end of the day, this also affected the Naira against the US Dollar at the Investors and Exporters (I&E) segment of the market as the local currency traded at N363.16/$1 depreciating by 28 Kobo or 0.08 percent from Tuesday’s N362.88.
The local currency at the parralel market also depreciated by N1 against the British Pound Sterling as the Naira traded at N445/£1 from N444/£1 it did the previous day.
However, the Naira was able to catch a breath of relief as it appreciated N1 against the Euro, meaning this would be the third time this week as the Naira gained N1 on the Euro.
The local currency gained N1 to trade at N397/€1 on Monday, then another N1 to trade at N396/€1 on Tuesday, and then ended Wednesday with another N1 gain to close at N395/€1.
The Naira/USD exchange rate of N360/$1 saw no movement still at the parallel market.
At the Central Bank’s interbank segment of the foreign exchange, the local currency exchange rate remained at N307.00 to a single dollar as it saw no change into the third day since it last recorded at N306.95.