Adedapo Adesanya
By Adedapo Adesanya
The huge demand for Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Wednesday, February 26 weakened the Naira at the close of transactions.
Data obtained by Business Post from the FMDQ Securities Exchange showed that there was a 1919 percent or $919.6 million hike in the value of transactions at the investors’ window yesterday.
As we gathered, transactions worth $1.4 billion were recorded at the I&E segment of the market on Wednesday compared with $480.39 million achieved on Tuesday.
This led to the weakening of the local currency by 0.05 percent or 19 kobo, closing at N365.52/$1 in contrast to N365.33/$1 it was traded the previous trading session.
At the Bureau De Change (BDCs) segment of the market, the domestic currency appreciated by 40 kobo at the Abuja market, closing at N358/$1 in contrast to N358.40/$1 it traded previously. However, the local currency depreciated against the Pound by N2 to N475/£1 from N473/£1 and dropped N1 against the Euro to N395/€1 from N394/€1.
At the Lagos BDC market, the Nigerian currency gained 20 kobo against the American Dollar to close at N358.30/$1 compared with N358.50/$1 it was sold on Tuesday. It also appreciated by N1.50 against the Euro to N389.50/€1 from N391/€1 and gained N1 on the British pound to N471/£1 from N472/£1.
But at the Kano BDC market, the Naira traded flat against the three major foreign currencies; Dollar, Pound and Euro at N358/$1, N472/£1 and N395/€1 respectively.
It was not a different story at the Port Harcourt BDC market as operators sold the Naira at the previous rates against the US Dollar, Pound and Euro at N358/$1, N475/£1 and N397/€1 respectively.
At the parallel market, the domestic currency remained unchanged against the Dollar and Euro at N360/$1 and N390/€1 respectively, but appreciated by N1 on the British currency to close at N471/£1 in contrast to Tuesday’s closing rate of N472/£1.
At the interbank segment of the foreign exchange market, which is also dubbed as the official exchange rate of the Central Bank of Nigeria (CBN), the Naira traded flat against the greenback at N306.95/$1.
