- Naira Appreciates at Parallel market, Sells at N462 Per Dollar
The Naira on Thursday marginally appreciated against the dollar at the parallel market.
The Nigerian currency gained three points to exchange at N462 to a dollar, after it closed at N465 on Wednesday, while the Pound Sterling and the Euro closed at N550 and N477, respectively.
At the Bureau De Change window, the Naira was sold at N399 to a dollar CBN controlled rate, while the Pound Sterling and the Euro closed at N550 and N500, respectively.
The Naira exchanged at N305.80 at the interbank market.
Currency traders expressed optimism that liquidity boost in the market would help to shore up the Naira rate.
However, An economist, Mr Harrison Owoh has attributed the instability in the exchange rate in spite of liquidity boost in the FOREX market to excessive demand for dollars.
Owoh said that the injection of $1.14bn by the Central Bank of Nigeria to the interbank market were majorly at the service of letters of credits and invisibles.
According to him, it is the cash at hand that brings down the exchange rate not mere letters of credit.
He explained that China, which is the seat of importation business, was on holiday for a full month, adding that the vacation slowed importation activities by Nigerian importers.
The economist said that since the resumption in importation, the demand for FOREX had outstripped its supply.
FG Generates $9.35bn Foreign Inflow in February -CBN
FG’s Foreign Inflow Stood at $9.35bn in the Month of February
The Central Bank of Nigeria (CBN) said the nation’s foreign exchange inflows stood at $9.35 billion in the month of February.
The apex bank stated this in its monthly report for February.
It said, “Foreign exchange flows through the economy resulted in a net inflow of $9.35bn in the review period, compared with $9.99bn and $4.58bn at end-January 2020 and end-February 2019, respectively.”
The report stated that external revenues declined by 11.7 percent due to the drop in the global oil price to $58.56 per barrel in the month under review.
Therefore, aggregate foreign exchange inflow stood at $16.19 billion in the month, a decrease of 4.4 percent when compared with the month of January.
However, this was 61.7 percent higher than the corresponding period of 2019 when things were normal.
The development relative to the month of January reflected a decline of 8.6 percent and 2.5 percent in inflow through the bank and autonomous sources, respectively.
According to the report, aggregate foreign exchange outflow declined by 1.5 percent to $6.85 billion when compared with the preceding month. Still, it was 26 percent higher than the corresponding period of 2019.
Naira Plunges to Record Low of N470 Against US Dollar on Black Market
Naira Plunges to N470 Against US Dollar on Black Market
The Nigerian Naira plunged further against the United States dollar on the black market on Tuesday as forex scarcity persists.
The local currency depreciated to N470 a US dollar on Tuesday, its lowest in over three years. This was N5 lower than the N465 it exchanged on Monday.
Naira plunged to N460 per US dollar almost three weeks ago and has remained within that range ever since.
This, experts, attributed to the nation’s weak foreign revenue generation and economic uncertainties amid global pandemic. While the Central Bank of Nigeria has put measures in place to arrest the situation and consistently support the nation’s currency, low oil prices and weak foreign revenue generation have continued to dictate investors’ sentiment in the Nigerian market.
This lack of confidence in policy direction has resulted in low capital importation and surged in capital flight, especially those looking to move their funds to a safe haven.
Against the British Pound, the Naira slid to N570, down from N565 it Exchange on Monday and Friday.
This decline continues against the European single currency as the local currency dropped by N5 from N510 it traded on Monday to N515 on Tuesday on the black market.
On the Investors and Exporters’ Forex Window, the Naira remained flat against the US dollar. It was exchanged at N386 to a US dollar, the same rate it traded on Monday.
However, investors’ daily turnover declined from $36.28 million recorded on Monday to 12.91 million on Tuesday.
Meanwhile, OPEC has said Nigeria’s will struggle to increase economic productivity in 2020 given its rising cost of debt servicing and weak oil prices.
This, the cartel attributed to low tax revenue and huge debt servicing to revenue ratio.
Naira Remains Under Pressure at N465/$ on Black Market
Naira Exchanges at N465 to a US Dollar on the Black Market
The Nigerian Naira remained under pressure at N465 to a United States dollar on the black market following the Central Bank of Nigeria (CBN)’s Naira-USD exchange rate adjustment.
The local currency plunged against the US dollar to almost three years low two weeks ago and remained at that level ever since. This was because the market had projected the eventual adjustment in the official foreign exchange rate from N360/$ to N380/$.
On July 8, the CBN devalued the nation’s foreign exchange rate from N361 to N381 per US dollar for investors and importers to better manage the nation’s dwindling foreign reserves and improve access to forex.
Against the British Pound, the Naira traded at N565, the same rate it exchanged on Friday. This continues against the Euro common currency as the local currency remained under pressure at N510 a unit Euro.
On the Investors and Exporters’ foreign exchange window, the local currency gained 0.26 percent against the United States dollar to trade at N386.
Investors traded $36.28 million on the window on Monday. While the CBN official exchange rate remains N381 per USD, on the FMDQ Group website.
Forex scarcity continues to weigh on the nation’s exchange rate due to the weak foreign revenue generation and low oil prices.
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