Nigeria’s currency on Monday weakened by N2.66k as the dollar was sold at an average rate of N471.66k compared to N469.00k sold on Friday last week at the black market.
This is as a result of increased demand as dollar scarcity at the official window has pushed demand to the black market.
In some areas of Lagos, dollar sold at N473 while abokifx .com, which collates rates from street traders in Lagos put the exchange rate at N472.
The dollar scarcity was due to the outbreak of Covid-19 and the attendant increase in the prices for crude oil, which accounts for more than 90% of the country’s foreign-exchange earnings and more than a half of its revenue.
At the Investors and Exporters (I&E) forex window, Naira remained stable at N388.50 per dollar as most participants maintained bids between N380.00 and N390.50 per dollar.
The Central Bank of Nigeria (CBN) recorded a further decline of $13.78 million Week-To-Date to $36.12 billion in reserves as FX outflows outpaced inflows, according to a report by FSDH research In the I&E FX market, trade volumes remained subdued due to tightened liquidity.
Naira showed sign of depreciation as the foreign exchange market opened with an indicative rate of N388.40k on Monday from N388.07k opened with on Friday last week, data from FMDQ revealed.
The daily turnover by 4.54 percent to $38.72 million on Monday from $37.04 million recorded on Friday last week.
