Naira Appreciates at I&E Despite 383% Rise in Demand for Dollar

strong dollar demand Naira

By Adedapo Adesanya 

The last trading day of the week at the Investors and Exporters (I&E) segment of the foreign exchange market ended on a positive note for the Naira on Friday, October 24, 2019.

At the market window yesterday, the local currency appreciated against the US Dollar. Data sourced by Business Post from the FMDQ showed that the Naira was strengthened by 7 kobo or 0.02 percent to close at N362.11/$1 compared with N362.17/$1 recorded on Thursday.

The rise in the value of the domestic currency against the greenback came despite the pressure on it at the market yesterday as reflected in the market turnover for Friday.

It was observed that the value of transactions at the investors window increased on Friday by 382.7 percent or $254.22 million to $320.64 million from the $66.42 quoted at the previous session.

Business Post further observed that the Naira was able to appreciate yesterday despite the strong demand for Dollar at the market window because traders were able to meet the demands of customers. This liquidity was supported by the supply from the apex bank during the week.

At the parallel market, the Naira remained flat against the US Dollar to trade at N360/$1, the same rate it had traded for several days at the segment of the forex market.

However, it was a different ball game for the local currency against the Pound Sterling as the Naira appreciated by N1 to close at N462/£1 in contrast to N463/£1 recorded on Thursday.

Also, the local currency recorded a movement against the Euro on Friday as the Naira appreciated by N1 against the currency at the black market to close at N402/€1 versus the N403 it was exchanged on Thursday.

At the interbank segment of the Central Bank of Nigeria (CBN), the domestic currency remained unchanged against the American currency, trading at N306.95 to a Dollar on Friday.

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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