The exchange rate between the naira and the US dollar closed on Friday 10th of July at ₦465/US$1 in the parallel market. The exchange rate closed at ₦463/$1 on Thursday.

• Naira: ₦465
• Dollar: $1
• Date: July 10th 2020

The exchange rate between the naira and the British pounds sterling also closed at ₦565/₤1 on Friday 10th of July as against N562/$1 on Thursday 9th of July.

• Naira: ₦565
• Pounds Sterling: ₤1
• Date: July 10th 2020

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The exchange rate between the naira and the European euro also closed at ₦506/€1 on Friday 10th of July as against N505/€1 on Thursday 9th of July. 

• Naira: ₦565
• Pounds Sterling: €1
• Date: July 10th 2020

Activity: The US dollar exchange rate rose to as high as ₦470/$1 during intra day trading. Most traders blamed scarcity for the mid-day volatility.

READ ALSO: The risk of buying Forex at black market rate of N460/$1 

Data is collated from various black market dealers on the mainland and island of Lagos State where forex is sold. The price quoted daily on this page represents the average price obtained by our Research Team. Our prices are a guide and could be slightly different from the price you get when you eventually decide to buy or sell. This is a daily tracker and updated close of business. See table below for parallel market exchange rate dating to 2019.

The President of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, announced on Friday that the recent CBN unification of Nigeria’s exchange rate is a welcome development that will boost investor confidence in Nigeria.

He said the exchange rate unification will enable stable planned production for manufacturers in Nigeria leading to economic growth, adding that the Manufacturers Association had urged for an exchange rate unification to enable a market-friendly business environment in Nigeria.

“Clearly, this is a welcome development and a laudable initiative that has come at the right time. This is more so, particularly, now that the economic outlook is gloomy in light of the impact of the ravaging COVID-19 pandemic that has culminated in uninspiring macroeconomic situations,” he said.

He revealed that the World Bank had attributed Nigeria’s falling Foreign Direct Investment (FDI) to the multiple exchange rates as investors felt a “manipulation of the foreign exchange market.”

“The unification will also boost investors’ confidence, control rising inflation, and promote transparency, entrench better exchange rate management and eradicate distortions to the barest minimum,” he added.

READ MORE: After hitting a 3-year low during the week, Naira stabilizes as traders wonder what next)

He urged the CBN to tackle activities that made speculators manipulate the multiple rates like “round-tripping” which he says expand the inflows of foreign investment into the economy.

He called on the Central Bank to implement 2 strategies to ensure a smooth transition into a unified exchange rate system.

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“The first is to limit the short-term pains until efficiency gains materialize by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialize,” he said.

He advised, it’s necessary the CBN “submit all the instruments of exchange rate determination” towards a free-market approach.

The greenback gained some ground at London’s trading session, as currency traders and many global investors turned to the safe-haven asset. Earlier on Thursday, the world’s largest economy reported over 60,000 COVID-19 cases, thus weakening hopes of accelerated economic recovery.

The U.S. Dollar Index, which tracks the American dollar against a basket of major currencies, gained 0.19% to 96.858 by 5.56 am local time on Friday.

“The market was in a mild risk-off mood, following pretty bad [COVD-19] figures from Florida,” Kyosuke Suzuki, director of currencies at Societe Generale told Reuters.

Explore Economic Research Data From Nairametrics on Nairalytics

Why tracking the U.S dollar Index helps: Individuals hoping to meet foreign exchange payment obligations, and process transactions via the dollar to countries like England, France, or Japan, will need to pay fewer dollars for such transactions.

The American Dollar Index tracks the dollar’s strength relatively against a bouquet of other major currencies around the world, such as Japanese yen, Euro, British pounds sterling, Swedish krona, Canadian dollar, Swiss Franc, etc.

Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, explained why the odds on the greenback seem to be gaining traction. He said:

“What was interesting in Asia and UK trades yesterday was ‘Risk on’ currencies held on but were reluctant to punch higher despite the better tone in equity markets led by continued gains in China and the tech sector.

READ ALSO: Gold up as U.S. hits record number of COVID-19 cases

“This suggests that there were some doubts if the time was now for a good old-fashioned reflation trade driven by government spending, central bank liquidity, moral suasion (China telling citizens to buy stocks), and some quirky supply issues in copper and lumber.

“Despite the Forex market fickleness and risk on risk-off proclivities, I still see this is a textbook USD down environment, and I see no reason to stand in the way.”

READ ALSO: Safest, regulated Cryptocurrency, Arcoin backed by U.S. Treasury securities

In addition, America is presently responsible for over 3.1 million COVID-19 cases. There are still over 12.2 million cases and 550,000 deaths globally as of July 10, according to John Hopkins University data. Some states reported a record number of new cases on Thursday.