Dollar to a Naira Exchange Rate Flat on Black Market on Monday Morning

The US Dollar to a Naira exchange rate remained flat on the black market on Monday morning as businesses and investors’ sentiment surged with an improved economic outlook.

The Dollar to a Naira exchange rate stood at N457 on the black market on Monday morning while the British Pound rate to a Naira was N595, better than the N597 it exchanged on Wednesday.

The Euro to a Naira rate stood at N537 on Monday, a N3 improvement from N540 it sold on Wednesday.

The Naira remained under pressure despite the recent improvement in value following the Central Bank of Nigeria’s decision to lowered the interest rate by 100 basis points to 11.5 percent.

Economic uncertainties as the nation prepared for a second recession in four years weighed on foreign direct investment and continues to drag on growth, especially after the World Bank predicted that the nation’s growth would contract by as much as 4.1 percent in 2020 and only rebound by 0.3 percent in 2021 due to its overexposed to the global oil market.

However, the multilateral financial institution supported President Muhammadu Buhari’s decision to remove oil subsidy and adjust the nation’s electricity tariff to reflect the actual consumption.

Still, it is uncertain if the recent measures by the Federal Government and the Central Bank of Nigeria would be enough to stimulate growth in the real sector of the economy and prop up the Dollar to a Naira exchange rate given the global health crisis.