• Friday, June 21, 2024
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Naira falls back to N760 per dollar at parallel market

Dollar nears N1,500 as scarcity hits black market

Naira on Tuesday fell back to N760 per dollar, after gaining 0.26 percent of its value against the foreign currency on Monday at the parallel market.

After trading on Tuesday, the dollar closed at N760 from N758/$ traded on Monday at the unofficial market, as demand for the greenback by the end users increased.

The local currency appreciated by 0.14 percent as the dollar was quoted at N464.42 during the intra-day trading on Tuesday from N465.10/$ on Monday, at the Investors and Exporters (I&E) forex window, data from the FMDQ showed.

The Nigerian forex market is segmented with multiple exchange rates, according to a monthly report by Financial Derivatives Company (FDC).

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The most important rate is the Investors and Exporters window (IEFX), the report said, adding that currently, the volume of forex transactions traded on this window is estimated to be less than 45 percent. The Central Bank of Nigeria (CBN), and exporters and investors use this window. It serves not only as a source of price discovery but also a barometer for measuring potential and actual CBN intervention in the market.

Aside from the nearly $30 billion foreign exchange savings from the reduction in petroleum imports, Nigeria’s economy is projected to benefit an extra $10 billion of foreign exchange inflow annually through the export of refined petroleum products, said Godwin Emefiele, governor of the CBN.