Naira Appreciates at I&E Window as Forex Demand Eases

By Adedapo Adesanya

After the Central Bank of Nigeria (CBN) eased devaluation fears last week, the Naira started a recovery and this continued on Monday, March 16.

The local currency appreciated 69 kobo or 0.19 percent on the US Dollar at the Investors and Exporters (I&E) segment of the foreign exchange market yesterday, closing at N367.78/$1 in contrast to N368.47/$1 it ended at the segment last Friday.

This strengthening of the domestic currency was buoyed by the lower demand for the greenback at the market. At the close of the session, investors exchanged a total of $295.58 million, lower than the previous session’s $1.03 billion, indicating a decline by 71 percent or $733.42 million.

Business Post reports that the official Naira/Dollar exchange rate at the CBN window remained at N306.95/$1 at the close of transactions on Monday.

Also, the Nigerian currency remained stable against the American currency at the parallel market yesterday, trading at N380/$1. It, however, gained N5 against the British Pound Sterling, closing at N485/£1 in contrast to the previous day’s N490/£1. Against the Euro, the Naira gained N1 to close at N415/€1 in contrast to N416/€1 it previously traded.

At the Bureaux De Change (BDCs) segment of the foreign exchange market, the Naira depreciated by N8 against the Dollar at the Lagos BDC market to close at N378/$1 compared with N370/$1 it traded previously. However, it appreciated by N10 against the British currency to N480/£1 from N490/£1, while it got strengthened by N11 against the Euro to N405/€1 from N416/€1.

In the capital city of Abuja, the local currency was weakened against the US Dollar, this time by N6, to N372/$1 from N366/$1 and gained N9 against the Euro to N415/€1 from N424/€1, but remained static against the Pound at N488/£1.

The Naira/USD exchange rate at the Kano market saw a N2 decline as it closed at N369/$1 against N367/$1 last Friday and depreciated by N5 on the Pound to N480/£1 from N475/£1, while against the Euro, it closed flat at N417/€1 on Monday.

At the Port Harcourt BDC market on Monday, the local currency depreciated by N5 to N375/$1 from N370/$1 and lost N2 against the Pound Sterling to N478/£1 from N476/£1, but appreciated by N11 against the Euro to sell at N406/€ compared with N417/€1 it was traded at the previous session.