The value of Naira on Tuesday dropped against the US dollar in the parallel market, widely known as the black market.
In the parallel market, the naira saw its value drop to N460/$1 against N455/$1 on Monday.according to aboki fx.
However, at the Investors’ and Exporters’ Window (I & E Window) the value of the Naira rose against the Dollar to close at N386.33 compared to the opening value of N388 according to the information on FDMQ page.
The Naira traded at a high value of N391/$ and a low value of value N375/$.
On the other hand, naira appreciated in value against the British pounds to trade at N540 per GBP compared to N545 per GBP on Monday, in the parallel market.
As business and economic activities return gradually to the country, the demand for the dollar will be gradually increasing. The Nigerian naira has been under immense pressure since the slump in oil prices due to low demand as a result of the Coronavirus pandemic.
In it’s effort to avert a free fall in the value of Naira, the Central Bank of Nigeria (CBN) in March “technically devalued Naira” and also maintained it’s forex intervention in the foreign exchange market.
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Since oil is the major source of revenue for the government as well as foreign exchange earnings for the highly oil dependent economy, the recent upward trend in the prices of oil will offer some hope on the stability of the Naira.
The technical devaluation saw the I&E window rate move from N360/$1 to N380.2/$1 while the official exchange rate moved from N306/$1 to N360/$1.
Written by
Ifunanya Ikueze
