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Naira gains N1.00k against dollar as demand slows

Nigeria’s currency on Wednesday gained N1.00k on the black market as the dollar was sold at N473 as against N474 sold on Tuesday.

The naira appreciation was attributed to low demand by end users amid dollar shortages. However naira was stable at N474 and N381 at the retail bureau and the Central Bank of Nigeria (CBN) official window respectively.

The Apex bank on March 26, suspended foreign exchange sales to the Bureau De Change (BDC) operators, until further notice, due to the Covid-19 lockdown as requested by the operators. The suspension notwithstanding, some BDCs are still active in the market.

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 Investors and Exporters (I&E) forex window, naira signalled appreciation as the market opened with an indicative rate of N387.79k on Wednesday. This represents N0.67k gain when compared with N388.46k opened with on Tuesday, data from FMDQ showed.

Analysts at the FSDH research noted that in the I&E FX window, the dollar supply remained weak, with a very low volume passing through the market due to the tightened system liquidity. Naira weakened by 0.26 percent as the dollar was quoted at N389.00 on Tuesday compared to N388.00 on the previous day. Most participants maintained bids between N380.00 and N390.00 per dollar.

The foreign exchange daily turnover at the I&E window rose by 43.12 percent to $24.66 million on Tuesday from $17.23 million recorded on Monday.

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