Adedapo Adesanya
By Adedapo Adesanya
Transactions closed on Monday, November 4, 2019 at foreign exchange (forex) market with the Naira appreciating against the US Dollar at both the Investors and Exporters (I&E) and Interbank segments of the market.
The local currency saw a 20 Kobo gain against the Dollar at the investors window yesterday to trade at N362.55/$1. This is in contrast to N362.75/$1 the Naira was exchanged at the same segment last Friday.
It was observed that the appreciation in value recorded by the domestic currency was influenced by the ease in the demand for the greenback at the market on Monday.
This was reflected in the value of trades printed at the I&E segment during the trading session as captured by FMDQ, the platform responsible for tracking forex transactions.
Business Post gathered that the market turnover dropped on Monday by 77.9 percent or $87.89 million as investors exchanged a total of $24.99 million compared with $112. 88 million exchanged at the previous session.
At the interbank segment of the Central Bank of Nigeria (CBN) on Monday, the domestic currency achieved a growth of 5 Kobo equivalent to 0.02 percent against the Dollar to exchange at N306.95/$1 compared with N307/$1 from the previously quoted price.
A look at the Naira’s performance at the parallel market showed that it remained flat against the three major quoted currencies tracked at the market; the US Dollar, the Euro, and the British Pound Sterling.
At the close of business on Monday, the Naira traded at N360 to the Dollar at the black market, while it remained at N400 to the Euro at the same window, and N463 against the British Pound.
With just over five weeks until the United Kingdom heads to the polls on December 12, investors are quite skeptical of the likely outcome and this could be considered to be the main reason the British currency has been performing below expectations following a strong performance last month.
