Naira Gains Amid 315% Rise in Forex Demand at I&E Thursday

Forex Demand

By Adedapo Adesanya

The Naira closed stronger against the US Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Thursday.

At the market window, the domestic currency appreciated by 30 kobo equivalent to 0.08 percent to sell at N385.70/$1 in contrast to N386/$1 it traded on Wednesday.

This was despite the 314.8 percent or $50.55 million hike in the demand for forex at the session, resulting into the $66.61 million worth of transactions executed as against the previous day’s $16.06 million.

However, at another segment of the market, the interbank, which is the official window for the exchange of currencies for government transactions, the Central Bank of Nigeria (CBN) sold the greenback to banks at N361/$1, the same rate it was the previous session.

At the Bureaux De Change (BDCs) segment of the market, the Naira further depreciated by N1 against the Dollar in Lagos to close at N453/$1 compared with N452/$1 it traded previously.

It also depreciated by N2 against the British currency to close at N554/£1 versus the previous N552/£1, while it closed down by N6 against the Euro at N498/€1 compared to N492/€1.

In Abuja, the local currency weakened against the US Dollar by 50 kobo to N452/$1 from N451.50/$1 and lost N12 against the Pound to N560/£1 from N548/£1, while it shed N13 on the Euro at N495/€1 Versus N482/€1.

The Naira depreciated by N2 against the American currency at the Port Harcourt BDC market to close at N452/$1 as against N450/$1 it was sold in midweek, and depreciated by N7 on the Pound to N555/£1 from N548/£1, and then lost N6 against the Euro to close at N496/€1 in contrast to N490/$1.

At the Kano BDC market, the local currency shed N3 against the Dollar to close at N450/$1 in contrast to N447/$1 on Wednesday, but remained stable against the Pound Sterling and the Euro to sell at N540/£1 and N490/€1 respectively.

A look at another segment of the market, the parallel market, showed that the Nigerian currency maintained its stability against its American counterpart yesterday, trading at N453/$1. It also retained the same rate against the Euro at N490/€1.

But against the British currency, the local currency depreciated by N2 to close on Thursday at N552/£1 versus N550/£1 it closed at the midweek 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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