Naira Appreciates Slightly Against the US Dollar and Euro

The Nigerian Naira gained slightly against the United States Dollar on Friday amid a drop in demand for the US currency.

The local currency traded at N464 to a United States Dollar, gaining N1 from the N465 it exchanged on Thursday.

Naira extended its gain to the European Union single currency, the Euro, as it gained N3 from N543 it traded on Thursday to N540 on Friday.

However, the Naira remained stable against the British Pound at N596, the same rate it traded most of the week.

Despite the Central Bank of Nigeria commencing the sales of forex to the nation’s Bureau De Change Operators (BDCs) in September, dollar scarcity persists amid rising demand that has pushed the exchange rate to a record high on the black market.

“As part of efforts to enhance accessibility to foreign exchange particularly to travelers following the announcement of the limited resumption of international flights by the Honourable Minister of Aviation commencing with Abuja and Lagos, the Central Bank of Nigeria hereby wishes to inform the General Public that gradual sales of foreign exchange to licensed BDC operators will commence with effect from September 07, 2020,” the central bank stated in August.

“Consequently, purchase of foreign exchange by BDCs shall be on Mondays, and Wednesdays in the first instance,” it added.

Still, BDCs are struggling with liquidity as the weak foreign revenue generation weighed on CBN’s ability to intervene across the foreign exchange markets.