Naira stabilises at N448 in black market

Nigeria’s naira is currently exchanging at N448, the same rate exchanged on Tuesday in the black market.

Traders attributed the stability seen in exchange rate for two days to low demand for dollars by the end users and quiet activity in the market.

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) had engendered confidence in the market, as he pointed out the accretion in external reserves and the Apex bank’s position to defend the naira.

Nigeria’s external reserves have risen to $36.51 billion as at June 8, 2020, which is 5.85 percent higher compared to $34.49 billion recorded in April 8, 2020, according to the data obtained from the CBN’s website.

The price of Brent crude has risen to $40.35 per barrel as at today Wednesday from as low as $20 per barrel in March 2020.

The CBN on April 29, 2020 resumed dollar sales for school fees and Small and Medium Enterprises (SMEs). The Apex bank 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.

However, the foreign exchange market opened on Wednesday with an indicative rate of N386.96k at the Investors and Exporters (I&E) forex window.

This represents a N1.01k depreciation when compared with N385.95k it opened with on Tuesday, data from the FMDQ revealed. The daily FX turnover increased by 116.98 percent to $31.81 million on Tuesday from $14.66 million on Monday.

The regulator on May 10, 2020 assured investors of the security of their investments in the country despite dwindling revenue from the sale of crude oil globally.

Emefiele, said investors interested in repatriating their funds from the country were guaranteed to get their money.

Source: Business Day.

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