Naira Remains Under Pressure at N460 to US Dollar on Black Market

Naira Dollar Exchange Rate

Naira Trades Flat at Record-low of N460 on the Black Market on Monday

The fortune of the Nigerian Naira has not changed on the parallel market, popularly known as the black market.

The local currency was exchanged at N460 to a United States dollar on Monday, the same rate it traded on Thursday, Friday and throughout the weekend.

Similarly, against the British Pound, the Naira remained unchanged at N560. The lowest it has traded in recent months.

The weak Naira value continues against the European single currency as it exchanged at N505 on Monday, down from N498 it traded on June 25, 2020.

On the Investors and Exporters Forex Window, the Nigerian Naira gained 33 Kobo against the US dollar to trade at N386 on Monday after falling to as low as N389 against the greenback earlier in the day.

Activity level improved significantly as turnover rose from $35.92 million recorded on Friday to $122.89 million on Monday.

While the official rate remains N360 to a US dollar, lack of liquidity due to weak forex generation continues to pressure the Nigerian Naira as traders and investors are unable to access forex to either import necessary raw materials or repatriate funds to their parent countries.

This lack of dollar liquidity has impacted prices of goods and services in Africa’s largest economy. Pushing inflation rate to over 22 months high of 12.40 percent in the month of May.

Mr. Boss Mustapha, the Chairman Presidential Taskforce on COVID-19 and the Secretary to the Federal Government, on Monday during a briefing in Abuja, said the nation’s airlines will have to increase their ticket fares due to rising cost of goods and services. Suggesting that the situation might get worst as it appears the Federal Government does not have plans to bailout the aviation sector trying to reduce potential lay-offs.

These series of economic uncertainties continue to pressure the local currency as investors are now expecting another devaluation.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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