Dollar to Naira Exchange Rate Hits N450 at Parallel Market

• Dollar to Naira Exchanged at N450 on the Parallel Market

The US dollar to Naira exchange rate remained unchanged at N450 on Monday, Investors King‘s daily naira rates revealed.

According to the live data, the dollar to naira rate stood at N450 on the parallel market, popularly known as the black market.

Against the British Pound, the Nigerian naira traded at N550, down from N545 it was exchanged on Friday.

While against the Euro single currency, the Nigerian Naira exchanged at N472, gained N1 when compared to the N473 it traded on Friday.

On the foreign exchange market, the Investors and Exporters’ forex window, the local currency traded at N386.89 to a US dollar, slightly lower than the N386.50 it was exchanged on Friday.

The US dollar to naira exchange rate is largely influenced by two main factors, the activities of the Central Bank of Nigeria at the local foreign exchange market and also the nation’s foreign reserves.

Nigeria’s foreign reserves declined with the fall in global oil prices to $35.56 billion, down from $38 billion in January 2020.

This dropped in reserves impacted the central bank’s ability to intervene at the nation’s foreign exchange market, forced the CBN to devalue the currency and also compelled the monetary policy committee to increase the cash reserve ratio to 27.5 percent to further ease the demand pressure from deposit money banks.

However, with the global oil prices gradually recovering from record lows of April 2020 when global risk was at a level never seen before, the nation’s foreign reserves will improve in the near-term even though the uncertainty remains high globally, especially with the tension between the US and China at an unpredictable level and protests going on in the world’s largest economy, US, not slowing down following the killing of George Floyd, a black American.