Naira Depreciates to N362/$ at Black Market

By Adedapo Adesanya

For the first time in several weeks, the Naira depreciated against the United States Dollar at the black market on Thursday. The the local currency, which had traded at N360/$ at the segment of the foreign exchange market, went down to N362/$1 at the close of business yesterday.

During the day’s session, the greenback was boosted against the Nigerian currency by N1 in the afternoon and by evening, when market activities were wrapping up, it stole another N1 from the domestic currency to settle at N362/$1, leaving the currency with 0.56 percent loss.

Also, at the parallel market, the Naira depreciated against the British Pound as the United Kingdom election held. The Naira further traded down to N473/£1 after dropping to N472 on Wednesday.

Possible Conservative Party victory led by Prime Minister Boris Johnson have pressured other currencies and brought about a strong performance for the Pound Sterling in recent weeks. The party’s victory spells the exit of the country from the European Union.

However, against the Euro, the local currency remained at N397/€1 at the black market on Thursday.

At the interbank segment of the market, the Nigerian currency remained stable at N306.95/$1.

But at the Investors and Exporters (I&E) window of the forex market, Business Post gathered from the FMDQ OTC Securities that the Naira further appreciated against the Dollar. The local currency gained 13 Kobo against the greenback yesterday to trade at N363.35/$1 in contrast to N363.48/$1 it was sold the previous session.

The daily market turnover during the day reduced by 20.6 percent or $127.54 million to $490.54 million from $618.08 million exchanged at the previous session.

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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