Adedapo Adesanya
By Adedapo Adesanya
The Naira depreciated at both the Investors and Exporters (I&E) and Interbank segments of the foreign exchange market on Tuesday, January 28, 2020.
At the I&E window, the local currency dropped for the second straight trading session by 38 Kobo or 0.11 percent against the US Dollar to trade at N363.33/$1 in contrast to N362.94/$1 it traded on Monday.
This followed the pressure on the local currency as the demand for forex increased during the session, resulting in higher turnover at the close of transactions.
Trades valued at $586.22 million were carried out at the market segment yesterday in contrast to $78.01 million recorded on Monday, indicating a rise by 692 percent or $512.21 million.
At the interbank segment of the Central Bank of Nigeria (CBN), the domestic currency also faced a decline against the greenback as its value reduced by 5 kobo equivalent to 0.02 percent to N307/$1 from 306.95/$1.
The Naira’s performance at the parallel market against major listed currencies saw no changes as it closed flat against the American Dollar, Pound Sterling and the Euro.
The Naira closed against the USD at N360/$1, remained unchanged against the Euro on Tuesday at N398/€1 and stayed static against British Pound Sterling at N476/£1.
At the Bureaux De Change (BDCs) segment in Lagos, the Naira lost 30 kobo at Tuesday’s session to close at N359.30 to a dollar compared to N359/$1 it traded on Monday. However, the domestic currency appreciated by N1.50 against the pound to close at N475.50k/£1 from N477/£1 while it closed flat against the Euro at N395/€1.
There was no change to the Naira/USD exchange rate at the Port Harcourt BDC market as it closed at N359/$1, just as it closed flat against the pound and Euro at N468/£1 and N398/€1 respectively.
In Abuja, the local currency exchange rate gained 50 kobo against the greenback to trade at N359/$1 after closing at N359.50k/$1, while the Naira gained N2 against the Pound to close at N476/£1 from N478/£1 and dropped N1 on the Euro as it ended Tuesday’s session at N399/€1 compared with N398/€1 recorded on Monday.
Meanwhile, in Kano, the Naira gained 50 kobo against the American currency to sell at N358.50/$1 in contrast to N359 to a dollar it was exchanged the previous day. It recorded a N1 gain against the British pound to close at N475/£1 from N476 on Monday but shed N2 on the Euro to close at N400/£1 compared to N398/£1 recorded previously.
