Adedapo Adesanya
By Adedapo Adesanya
The price of a Naira to a Dollar remained stable at both the parallel market and the interbank segment of the foreign exchange (forex) market on Wednesday.
Business Post reports that at the close of transactions at the interbank window of the Central Bank of Nigeria (CBN) yesterday, the local currency traded at N306.95/$1, the same exchange rate on Tuesday.
At the same market category, the domestic currency was traded against the British Pound Sterling at N397.29/£1, while it was exchanged at N340.04 to one Euro.
At the black market on Wednesday, the Naira closed in different directions against the three major foreign currencies traded at the market category, closing flat against both the US Dollar and the British Pound, while appreciating against the Euro.
An analysis showed that the exchange rate of the Naira to a Dollar remained at N360/$ at the close of business yesterday, while the exchange rate of the Naira to the Pound closed flat at N464/£1.
However, the Nigerian currency increased its value against the Euro by N1 during the midweek trading session to closed the day at N397/€1 in contrast to N398/€1 it went for the previous day.
A look at the Investors and Exporters (I&E) window of the FX market on Wednesday showed that the performance of the domestic currency against the greenback was impressive.
The Naira grew by 28 kobo or 0.08 percent against the Dollar yesterday to trade at N362.52/$1 in contrast to N362.80/$1 it traded on Tuesday at the same window.
Information from the FMDQ platform showed that the strength gained by the domestic currency was boosted by the ease in pressure on the Naira as a result of low demand for forex at the market.
This was reflected in the turnover achieved at the investors window during the midweek session. Transactions worth $233.65 million were recorded at the I&E segment on Wednesday compared with $316.12 million printed on Tuesday, indicating a decline by 26.1 percent or $82.46 million.
