Nigeria’s local currency has appreciated against the U.S Dollar despite the uncertainty of the foreign exchange market, going for N386.50 to a dollar at the Investors and Exporters (I&E) window.
The local currency strengthened by N0.20 against the dollar, when compared to the N386.70 to a dollar that it traded on Thursday, June 4, 2020.
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 N1.25, closing at N386.50 to a dollar, as against the indicative rate of N387.75 to a dollar that it opened with on Friday.
A cursory look at the data from the FMDQ shows that the turnover for the day went up by about 358% at $112.89 million. This is against the $24.64 million turnovers that was recorded on Wednesday, June 3.
The performance of the naira at the I&E window, however, seems to contrast with that at the parallel market where the local currency lost N3 to a dollar as it depreciated to N450 to a dollar on Friday as against the previous day’s rate of N447 to a dollar.
The Central Bank of Nigeria had promised to provide more liquidity in the foreign exchange market, especially for genuine users while also discouraging currency speculators from heating up the market.
The apex bank on Friday debited the accounts of 25 commercial banks with the sum of N460 billion naira ($1.2 billion) as additional cash reserves for missing cash reserve ratio (CRR).
Apart from serving as penalty to the banks, this also reduces the excess cash in the money market which might be used to put further pressure on the foreign exchange market.
About Article Author
Latest Nigeria News
- Resident doctors abandon Covid-19 treatment centres
- Magu battles Malami as suspended EFCC boss gets bail
- Father forces 12-year-old daughter into 2 marriages in one month
- PDP scolds Ize-Iyamu over APC false alarm
- BREAKING: Jan Oblak’s transfer to Stamford Bridge is good news for Chelsea fans
- First female pilot not dead
- Another N5.8bn pension fund scandal rocks Niger state
- Malami crushes Magu, EFCC, undertakes burial of anti-corruption war in Buhari’s govt
- Data war: More Nigerians dump MTN, Airtel for Glo
- More heads roll as Buhari goes after EFCC top officials
- NEXIM Bank explains ‘missing N50bn’ claims, exonerates MD
- Boko Haram demands N20 million ransom for kidnapped girls
- Osinbajo, others to attend 2020 MSMEs Awards
- Covid19: Cases approach 13,000 in Lagos
- Edo 2020: Ize-Iyamu incurs Oshiomhole’s wrath, engages in self-defeatist campaign
- GTbank, Access, others drag NSE to negative close
- Police arrest parents for domestic violence on 12-year-old daughter
- Brutalised! How 14-year-old had her genitals damaged
- How baby survived in a cave with her dead mother
- Police arrest Man, 24, for burning 10-year boy with hot knife
- Gruesome murder of Gokada founder begins to unravel
- No more hiding place for loan defaulters as CBN issues new guidelines
- BREAKING: Good news for the Red Devils fans as Manchester United finally ‘agrees’ Jadon Sancho transfer to Old Trafford
- Lagos Assembly Correspondents Mourn Lawmaker, Tunde Braimoh
- E-payment transaction declines by N96bn in April
- Aide opens up on conspiracy against Osinbajo, 2023 ambition
- COVID-19 and It’s Adverse Implications on Globalization
- Ekweremadu to chair PDP committee on Ondo governorship primaries
- Here’s what killed Nigerian professor of infectious diseases in Abuja quarantine
- Prediction: Manchester United vs. Southampton
- Secret of Magu’s Dubai meeting with alleged front exposed
- Magu reacts to alleged missing interest on recovered N550bn
- Fresh pressure on Buhari to fire Buratai, others over uncontrollable bloodshed in north
- Ex-NDDC MD raises fresh allegations against Akpabio, drops another bombshell
- Covid-19: Okotie attacks Gates, others
- Afenifere blows hot over lopsided appointments in NPA
- Police rescue American lady, held captive in Lagos hotel for 16 months
- BREAKING: Manchester City win fight against UEFA ban as EPL top four heightens
- Jada’s entanglement with August: 50 Cent makes joke after joke on Will Smith