Adedapo Adesanya
By Adedapo Adesanya
The Naira depreciated against the US Dollar at the official window of the Central Bank of Nigeria (CBN), otherwise known as the interbank segment of the foreign exchange market on Monday, December 16, 2019.
This came after a week of seeing no changes at the market segment. Yesterday, when the market closed for the day, the local currency went down against the American currency by 0.02 percent or 5 Kobo to 306.95/$1 from N306.90 to a Dollar.
Meanwhile, the local currency closed flat against the American currency at the Investors and Exporters (I&E) segment of the market on Monday, trading at N363. 49/$1, the same rate it was exchanged last Friday.
However, the market turnover at the window declined during the session by 55.9 percent or $100.19 million to $79.12 million from $179.31 million recorded at the previous session.
At the black market, the domestic currency remained unchanged against both the US Dollar and the Euro, but continued to depreciate against the Pound Sterling as the much-talked about divorce between the United Kingdom and the European Union (EU) draws nearer.
For the exchange rate of the Naira against the greenback at the parallel market, the local currency traded at $363 per Dollar, while the Naira/Euro rate stayed at N398/€1.
On the other hand, the local currency depreciated against the British Pound by N1 to settle at N477/£1 in contrast to N476/£1 it transacted at the previous session.
This was impacted by the strengthening of the British currency on the back of mandate given to the Prime Minister, Mr Boris Johnson, last week to get the UK out of the EU by January 31, 2020.
His party, the Conservative Party, won majority at the Thursday’s general election, leaving the main opposition party, the Labour Party led by Mr Jeremy Corbyn, with its tail between its legs. Analysts believe the Pound Sterling will continue to performance better against major currencies at the FX market.
