Naira Gains Strength on Low Dollar Demand Thursday

By Adedapo Adesanya 

The Naira gained muscle size and strength against the US Dollar at both the Investors and Exporters (I&E) segment as well as the Interbank window of the Central Bank of Nigeria (CBN) on Thursday, October 10, 2019.

Business Post reports that the performance of the local currency at the investors’ segment of the foreign exchange (forex) market yesterday was in sharp contrast to Wednesday, when it depreciated despite low demand for the greenback.

At the fourth trading day of the week at the I&E FX window, the local currency marginal gained 4 Kobo or 0.01 percent against the American currency to close at N362.46/$1 compared with N362.50/$1 it quoted the previous trading session.

This came on the back of the easing of pressure on the domestic currency as seen in the data from the FMDQ, which put Thursday’s market turnover at the I&E segment at $123.29 million against Wednesday’s $136. 83 million, indicating a decline of 9.9 percent or $13.54 million.

There have been steady decline in the movement of forex away from the Nigerian market lately and this has been attributed to the renewed interest of foreign portfolio investors in the local market.

The Nigerian capital market is driven by foreign investors, who pump money into domestic investment instruments available to them to make quick gains as a result of rising yields.

A look at the Interbank segment of the apex bank showed that the Naira appreciated against the Dollar by 5 Kobo or 0.02 percent to trade below N307 it had been since last week. The Naira was quoted against the greenback on Thursday at N306.95/$1.

At the parallel market, the domestic currency recorded no movement against the three major currencies at the segment; the US Dollar, the Pound Sterling, and the Euro yesterday.

The Naira remained flat at N360 against the greenback at the black market, while it stayed unchanged at N450 to a Pound Sterling and rigid at N390 to the Euro.

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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