By Adedapo Adesanya
Trading on Wednesday, October 9, 2019 at the Investors and Exporters (I&E) segment of the foreign exchange market closed on a bad note as the Naira depreciated marginally against the US Dollar.
Business Post reports that the Naira closed the day’s trade at N362.50/$1 after dropping 5 Kobo or 0.01 percent against the US Dollar from the N362.45/$1 it was exchanged at the market window on Tuesday.
According to information from FMDQ, the depreciation the local currency came despite an ease of pressure on it as reflected in the value of transactions recorded yesterday.
The investors window recorded transactions worth $328.53 million on Wednesday compared with the $465.36 million achieved on Tuesday, representing a decline of $136.83 million or 70.6 percent.
At the interbank segment of the Central Bank of Nigeria (CBN), the domestic currency saw no movement, closing for the day at $307.00/$1, the same rate it was traded the previous day.
At the parallel market, the Naira also remained unchanged against the Dollar, exchanging at N360/$, the same rate it had been for a very long time.
The Naira rate to the British Pound followed this same path on the same market as it closed at N450/£1 just like the local currency remained flat against the Euro at the black market at N390/€1.
Analysts have predicted that the Naira will remain at this present level for a while before recording steady decline if the present economic parameters are not changed for the better.
At the moment, Nigeria’s external reserves, which have been used to stabilize the Naira at the forex market, are going down gradually and have fallen below $42 billion due to recent poor performance of oil on the global market.
There are fears that if both the fiscal and monetary policy makers do not take actions to trigger economic growth in the country, Nigeria may be heading for another 2016 economic crisis, which is still battling to recover from.
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