Naira Gains Against Dollar After Eid-el-Fitr Break

Naira against pound sterling
Image Credit: The Sun

By Adedapo Adesanya

Normalcy returned to the foreign exchange market in Nigeria on Wednesday, May 27, 2020, especially at the parallel market as the Naira appreciated by N5 against the US Dollar to trade at N455/$1.

At the previous session before the Eid-el-Fitr break, the local currency had traded at N460/$1 at the same market segment. But when activities resumed yesterday, there was no pressure on the domestic currency.

Against the the Pound at the black market, the Nigerian Naira retained the previous session’s rate of N545/£1 and against the Euro, the exchange rate remained at N470/€1.

At the Bureaux De Change (BDC) segment of the forex market, operators in Lagos sold the Dollar for N456 compared with N458/$1 they traded the foreign currency last Friday, indicating an appreciation by N2.

However, against the Pound, the local currency shed N2 to close at N552/£1 compared with N550/£1, while on the Euro, it lost N6 to trade at N486/€1 as against N480/€1 it was exchanged at the last session.

In Abuja, the local currency gained N3 against the American currency to close at N458/$1 as against N461/$1 it was traded last. Against the Pound, it appreciated N10 to sell at N550/£1 versus N560/£1 and gained by N5 against the Euro to N485/€1 from N490/€1.

At the Port Harcourt BDC market, the domestic currency gained N4 against the Dollar to sell at N456/$1 in contrast to the previous N460/$1. Against the Pound, the Naira rose by N2 to close at N546/£1 compared with N548/£1 and against the Euro, it weakened by N3 to close at N478/€1 versus N475/€1.

Also, at the Kano market, the Nigerian currency gained N1 against the greenback to trade at N458/$1 compared with N459/$1 it sold last Friday. It also gained N10 against the Pound to trade at N550/£1 as against N560/£ of the previous session and against the Euro, the Naira lost N5 to close at N485/€1 versus N480/€1.

However, at the Investors and Exporters (I&E) segment of the market, it was a different outcome as the Naira flattened against the US Dollar at N385.94/$1.

Trades worth $31.38 million were executed at the I&E window on Wednesday, compared with $29.38 million achieved last Friday, indicating a $2.00 million or 7 percent rise.

At the interbank segment of the foreign exchange market, the Naira remained unchanged against the United States Dollar at N361/$1.

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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