Pressure Mounts on Naira, Sells for N475/$1 at BDC Market

By Adedapo Adesanya

The pressure on the Naira showed no sign of easing as it dropped against the US Dollar at the Bureaux De Change (BDC) segment of the foreign exchange market on Friday, August 14.

According to data obtained by Business Post from the Association of Bureau De Change Operators of Nigeria (ABCON), the local currency crashed by N2 against the greenback in Lagos to N475/$1 from N473/$1 it was sold on Thursday.

Also, the Nigerian Naira depreciated by N2 against the Pound Sterling at the commercial city of the country yesterday to sell at N607/£1 compared with the previous rate of N605/£1 but gained N3 on the Euro to finish at N547/€1 as against N550/€1 it was exchanged at the previous day.

In Abuja, the local currency shed 50 kobo on the US currency to close at N474/$1 versus N473.50/$1 it traded on Thursday while against the Pound, it lost N4 to close at N607/£1 versus N603/£1 and depreciated by N3 on the Euro to trade at N558/€1 versus N555/€1.

At the Port Harcourt BDC market, it was a sad day for the Naira as it suffered a N2 loss against the Dollar to sell for N474/$1 compared with the previous day’s rate of N472/$1. Against the Pound, the Naira lost N1 to close at N602/£1 versus N601/£1 and against the Euro, it lost N4 to close at N546/€1 versus N542/€1.

In Kano, the local currency lost N2.50 against the Dollar to trade at N475/$1 as against N472.50/$1 it traded on Thursday and lost N20 on the Pound to trade at N595/£1 as against N575/£1, while it shed N8 on the Euro to close at N548/€1 compared to N540/€1.

At another segment of the forex market, the Investors and Exporters (I&E) window, the Naira depreciated by 17 kobo or 0.04 per cent against the US Dollar to close at N386/$1 compared with N385.83/$1 it ended at the previous session.

This occurred despite a reduction in the pressure on the local currency during the session as reflected in the daily turnover, which went down by rose by $20.39 million or 49.2 per cent to $21.09 million from $41.48 million on Thursday.

At the parallel market, the local currency remained stable against the Dollar and Pound at N475/$1 and N605/£1 respectively but lost N3 on the Euro to trade at N550/€1 versus N547/€1.

A look at the interbank segment of the market showed that the Naira closed flat against the American Dollar at N381/$1.