Naira Falls at Interbank, Investors Segments

CBN interbank forex market

By Adedapo Adesanya 

The Naira depreciated against the US Dollar at both the interbank and the Investors and Exporters (I&E) segments of the foreign exchange market on Thursday, February 13.

According to data sourced by Business Post on the FMDQ Foreign Exchange, the Naira, which appreciated against the American Dollar to N306.90/$1 at the official Central Bank of Nigeria (CBN) window on Monday, depreciated on Thursday by 5 kobo or 0.02 percent to close at N306.95/$1

At the Investors and Exporters (I&E) segment of the market yesterday, the local currency fell against the Dollar by 7 Kobo equivalent to 0.02 percent to quote at N364.92/$1 in contrast to N364.85/$1 of the previous day.

The weakening of the value of the domestic currency followed the pressure it came under during the trading session. The demand for forex rose on Thursday, leading to $712.05 million worth of transactions recorded at the segment, higher than the $104.98 million recorded at the midweek session, indicating 578 percent or $607.07 million rise in dollar demand.

A look at the Bureaux De Change (BDCs) segment of the market across key locations in the country showed that in Lagos on Thursday, the Naira gained 20 kobo against the greenback to close at N358.30/$1 compared with N358.50/$1 it traded on Wednesday.

At the same location, the domestic currency appreciated by N2.50 against the Euro to settle at N394/€1 in contrast to the previous day’s N396.50/€1, while it traded flat against the Pound to close at N474/£1.

At the Abuja BDC market, the local currency improved by 20 kobo against the greenback to trade at N358/$1 after closing at N358.20/$1 previously. Against the pound, the Naira appreciated by 50 kobo to close at N474.50/£1 versus N475/£1 it recorded a day earlier, while it also gained 50 Kobo against the Euro to close at N394.50/€1 against N395/€1 it recorded previously.

At the Port Harcourt BDC market, the local currency traded flat against the US Dollar to close at N358/$1 and also remained unchanged against the Pound and the Euro to finish at N475/£1 and N397/€1 respectively.

At the Kano market, the Naira ended the session the same way it did the previous day against the American currency, the British currency and the European currency at N358/$1, N472/£1 and N395/€1 respectively.

At the parallel market segment, the domestic currency retained its rate of N360/$1 and N475/£1, while it appreciated by N1 against the Euro to close N395/€1 in contrast to N396/€1 it traded the previous day.

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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