Local Currency Maintains Stability Across FX Market Segments

October 10, 2020
local currency nigeria

By Adedapo Adesanya

The Naira was relatively stable against three major foreign currencies tracked across the various segments at the foreign exchange market on Friday, October 9.

At the Investors and Exporters (I&E) segment of the market yesterday, the domestic currency traded flat against the United States Dollar at N385.83/$1.

This occurred as the turnover of the transactions for for the session reduced by 23.5 per cent or $41.4 million as trades valued at $134.83 million were exchanged compared with the previous session’s $176.23 million, according to data obtained from FMDQ Securities Exchange by Business Post.

A look at the Bureaux De Change (BDC) window of the forex market showed that the value of the local currency against its American counterpart remained unchanged at N386/$1 across the four key locations of Lagos, Abuja, Port Harcourt and Kano, according to figures harvested from the Association of Bureau De Change Operators of Nigeria (ABCON).

When the Central Bank of Nigeria (CBN) resumed the sale of FX to operators at the segment, a strong warning was given against selling the Dollar to end usefrs above the approved price band. This is why operators have continued to exchange the Naira at the rate of N386/$1 to customers, who are mainly those travelling outside the country and need forex for Basic Travel Allowance (BTA) as well as those in need of the foreign currencies for medical, school fees payment and others.

At the parallel market on Friday, the local currency maintained stability against the United States Dollar, trading at N457/$1. Equally, the Nigerian currency traded flat against the British Pound Sterling yesterday at N595/£1 and also remained unchanged against the Euro at N537/€1.

At the interbank segment of the foreign exchange market, the value of the Naira over the American currency did not make any movement as it remained flat at N379/$1 at the close of transactions.

Adedapo Adesanya

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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