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FX market resumes after holiday with naira stable on black market

The foreign exchange market resumed activity on Monday morning after the two-day holiday, with Nigeria’s currency stable at N474 per dollar.

Dollar was trading as high as N475 in some parts of Lagos where the black market operators are operating.

The market has witnessed dollar shortages since early this year as a result of low prices of oil, which accounts for about 90 percent of the country’s foreign exchange earnings, and low inflows from remittances due to the Covid-19 pandemic.

At the Investors and Exporters (I&E) forex window, the market signalled appreciation in the value of naira with an indicative rate of N388.33k compared to N388.61k opened with on Wednesday before the holiday.

Read also: Nigeria’s Stock Market adds 4,000 points since hitting multiyear lows in April

Last week, the I&E FX window observed lower volume passing through the market due to tightened system liquidity. Naira appreciated by 0.06 percent as the dollar was quoted at N389.25 as compared to N389.50 on the previous day.

Analysts at FSDH Research noted that most participants maintained bids between N380.00 and N391.50 per dollar.

The local currency was also stable at the retail Bureau with the dollar trading at N475, the same rate since last week Tuesday.

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