Adedapo Adesanya
**As Brexit Uncertainty Weighs on Local Currency
By Adedapo Adesanya
Transactions at the foreign exchange market on Tuesday, October 22, 2019 closed on a very bad note for the local currency at various segments of the market.
The Naira depreciated against the US Dollar at both the Interbank and Investors and Exporters (I&E) segments of the market.
Data gathered by Business Post from the FMDQ trading platform showed that the local currency lost 5 Kobo or 0.02 percent against the American currency to quote at N306.95/$1 at the Interbank window in contrast to N306.90/$1 it was sold at the previous trading day.
At the Investors and Exporters (I&E) segment, the domestic currency lost 19 Kobo or 0.05 percent to close at N362.11 to a single dollar compared with the N361.92/$1 previously recorded on Monday.
In the midst of this, the demand for greenback reduced yesterday as reflected in the market turnover, which went down by 10.3 percent or $13.66 million to $118.78 million from $132.44 million at the last session.
At the parallel market, the domestic currency remained flat against the US Dollar at N360/$1, but depreciated against the Pound Sterling and the Euro for the second consecutive time this week.
At the close of transactions on Tuesday, the local currency depreciated by N3 against the British Pound Sterling to trade at N463/£1 against N460/£1 it quoted the previous day. This was in response to the optimism of the Pound benefiting from an extension on the Brexit process.
Signs of no-deal will more likely indicate a weaker Pound, judging by past performance, whilst signs of a deal being reached or an extension have given rise to a stronger British currency.
Also, at the black market, the value of a Naira to the Euro was further weakened yesterday by N1. This left the local currency to trade at N403/€1 in contrast to N402/€1 it was exchanged on Monday.
