Naira Sustained At Parallel Market Against The Dollar

Nigerian local currency has remained stable for the second time this week running at the parallel segment of the foreign exchange market against the United States dollar. It sold at ₦450 to $1 on Friday and has remained at that rate so far.

Naija news Understands that the stability of the naira is reinforced by the country’s foreign reserves, which have remained relatively stable at around $36.5 billion as at Thursday.

Meanwhile, the Naira further strengthened at the I&E forex window.  Naija News understands that increase at the forward market is a welcome development as President Muhammadu Buhari announced the disbursement of funds from the $200 million Nigerian Content Intervention Fund to indigenous manufacturers and service providers in the oil and gas sector. during his Democracy Day Speech earlier today.

However,  It was recorded that the naira gained ₦1.19 against the dollar when compared to the ₦386.94 to a dollar that is exchanged on Wednesday, June 10, 2020.

The exchange rate at the I&E window is different from the Central Bank of Nigeria’s published exchange rate, which currently stands at ₦360/$1. This is also different from the exchange rate at the parallel market, which was stable at ₦450 to a dollar, according to information on AbokiFX, as of Thursday.

Available information from the daily trading at FMDQ (where FX is traded by importers and investors) shows that the naira improved against the dollar by ₦1.75, closing at ₦385.75 to a dollar, as against the indicative opening rate of ₦387.50 to a dollar that it opened with on Thursday morning. The opening indicative rate on Thursday also represents a loss of N0.54 when compared to the ₦386.96 that it opened with on Wednesday.