Naira appreciates at official market as CBN disburses more cash to banks
As the Central Bank of Nigeria (CBN) continues release of more naira notes to commercial banks to ease scarcity, there seems to be a ripple effect on the performance of the Nigerian currency at the foreign exchange market.
According to data from FMDQ securities, Naira on Friday in the Investors and Exporters (I&E) gained 34 Kobo or 0.07 per cent against its American counterpart to trade at N461.33/$1 compared with the previous day’s value of N461.67/$1.
This happened as forex supply to the market increased significantly by 66.8 per cent or $161.35 million to $241.38 million compared to the previous day $80.03 million.
However, it was a different scenario for Nigerians who approached the unofficial market to buy foreign currency.
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In the Peer-to-Peer (P2P) window, the domestic currency lost N1 against the US Dollar to settle at N756/$1, in contrast to the N755/$1 it was sold a day earlier.
In the same vein, the Naira depreciated against the greenback in the black market yesterday by N1 to close at N743/$1 compared with Thursday’s closing rate of N742/$1.
In the interbank segment, the Nigerian Naira closed flat against the Pound Sterling and the Euro on Friday at N566.08/£1 and N497.72/€1, respectively.