Naira Stable Despite Rise in Demand for Dollar for Easter

Dollar scarcity

By Adedapo Adesanya

Preparations for Easter caused a spike in the demand for Dollar at the foreign exchange market on Thursday, especially at the Investors and Exporters (I&E) segment of the market.

Yesterday, the value of transactions at the FX window significantly increased by 93 percent to $146.91 million from $76.18 million.

This has almost been the pattern this week at the market segment despite the restriction placed on movements at various major cities in Nigeria to curtail the COVID-19 pandemic.

While the lockdown will remain active in Lagos, Ogun and Abuja, cities like Port Harcourt, Akure in Ondo State and others have relaxed the order to allow residents celebrate Easter.

But despite the rise in the demand for forex at the investors’ window yesterday, the Naira/Dollar exchange rate remained stable at the market.

At the close of business on Thursday, the Naira was sold against the Dollar at N384.83/$1 for the third straight session.

Also, at the interbank segment of the market, the local currency sustained its stability against the American currency, closing at N361/$1.

At the parallel market, the exchange rate of the Naira to the Dollar remained unchanged at N415/$1. However, the local currency depreciated by N5 against the Pound Sterling yesterday to sell at N495/£1 compared with N500/£1 it traded on Wednesday and traded flat against the Euro at N425/€1.

At the Bureaux De Change (BDC) segment of the forex market on Thursday, the domestic currency lost N2 against the Dollar in Lagos to quote at N416/$1 in contrast to N414/$1 that it traded previously. However, it appreciated N5 against the pound to close at N495/£1 versus N500/£1 it traded on Wednesday, while it also gained N5 on the Euro to close at N435/€1 compared with the previous exchange rate of N440/€1.

At the Port Harcourt BDC market, the Naira/USD exchange rate remained flat at N410/$1 just as it remained unchanged against the British currency and the Euro at N500/£1 and N419/€1 respectively.

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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