Naira Sustains Stability at Interbank at N361/$1

devalue naira
Image Credit: Jean Chung/Bloomberg

By Adedapo Adesanya

The value of the Naira to the United States Dollar remained stable at the interbank segment of the foreign exchange (forex) market on Monday.

During the trading session, the local currency was exchanged at N361/$1, the same rate it was traded in the previous session at the market window.

At the Investors and Exporters (I&E) window created by the Central Bank of Nigeria (CBN) for non-resident investors, the domestic currency appreciated by 50 kobo or 0.13 percent against the greenback to trade at N386/$1 in contrast to the previous session’s N386.50/$1.

The appreciation came amidst a huge pressure on the Nigerian currency as the value of transactions at the I&E increased yesterday.

According to data obtained from the FMDQ Securities Exchange, trades valued at $63.44 million were carried out at the window in contrast to the previous session’s $38.12 million, indicating a day-on-day increase of 66.4 percent or $25.32 million.

At the Bureaux De Change (BDCs) segment of the FX market, the Naira further depreciated against the American currency, dropping N3 in Lagos to sell at N458.50/$1 compared with N455.50/$1 it traded previously.

It also depreciated by N4 against the Euro to close at N502/€1 from N498/€1, while it closed flat against the British Pound at N559/£1.

In Abuja, the local currency weakened against the US Dollar by N2 to N457/$1 from N455/$1 and gained N42 against the Pound to N558/£1 from N580/£1, shedding N4 on the Euro at N502/€1 versus N498/€1.

The Naira/USD exchange rate at the Port Harcourt BDC market recorded a decline, falling by N4.50 to close at N458/$1 versus N453.50/$1 and depreciated by N8 on the Pound to N558/£1 from N550/£1, while against the Euro, it closed flat at N498/€1.

At the Kano BDC market, the local currency shed N5 against the greenback to close at N455/$1 as against N450/$1, but retained its previous rates against the Pound Sterling and the Euro to sell at N540/£1 and N490/€1 respectively.

A look at the parallel market on Monday showed that the Nigerian currency remained stable against the American currency at N455/$1.

However, the local currency depreciated against the British Pound by N2 to close at N555/£1 versus N553/£1 it closed previously, while against the Euro, it lost N8 to sell at N498/€1 from N490/€1.

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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