• Sunday, May 19, 2024
businessday logo

BusinessDay

Naira falls to N458 against dollar as FG fails to reopen airlines

56A52621-B1BD-4DA0-A059-31EC77717157

Nigeria’s currency on Monday weakened across the foreign exchange market after the Federal government failed to reopen the airlines, leading to uncertainty in the FX market.

Naira depreciated to N5.00k on Monday as the dollar was trading at N458 as against N453 traded on Friday last week on the black market.

Traders said there was an increase in demand for the greenback by the end-users some of who are speculators.

The reopening of the aviation industry has been put on hold by the Federal Government. The Federal Government on June 1, 2020 announced that airlines would resume operations on June 21.

The CBN said on April 29, 2020 that it has made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume.

At the retail bureau, Naira lost N4.00k as the dollar was sold at N460 on Monday from N456 on Friday last week.

The foreign exchange market opened on Monday morning with an indicative rate of N386.83k at the Investors and Exporters (I&E) forex window. This represents a marginal loss of N0.16k to naira value when compared with N386.67k opened with on Friday last week, data from the FMDQ showed.

Godwin Emefiele, governor of the CBN on May 10, 2020 assured investors of the security of their investments in the country despite dwindling revenue from the sale of crude oil globally.

Emefiele said investors interested in repatriating their funds from the country were guaranteed to get their money, notwithstanding the drop in the revenue from crude oil. He noted that the Bank had put in place policies to ensure an orderly exit for those that might be interested in doing so.