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Business News

Naira depreciates to N410 per dollar as local currency weakens

Naira depreciates to N410 per dollar as local currency weakens

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Exchange rate depreciates at NAFEX window as forex liquidity drops further by 57%, Central Bank Continues intervention in Forex market to stabilize Naira, Naira to depreciate slightly over $1.52 billion maturing contracts expires, Naira hits N388.84 to $1 at the currency spot market, Investors and Exporters (I&E) window, Naira weakens against the dollar by 1.14% amidst uncertainty, Naira gains against the dollar at I&E window, forex liquidity up by 242%  

Following the uncertainty in the foreign exchange market, the Naira depreciated at the parallel market on Friday evening.

Nigeria’s currency depreciated to N410 per one dollar at the parallel market, popularly known as the black market on Friday evening according to Aboki Fx. This development followed the suspension of sales of foreign exchange by the Central Bank of Nigeria (CBN) to the Bureau De Change operators (BDCs).

With the current rate of N410, the naira has depreciated by N20 from N390 per dollar traded on Wednesday.

Recall that earlier this afternoon, Nairametrics had reported that the dollar sold for N395 in the parallel market. The dramatic change in price attests to the volatility of the market.

The raging coronavirus and the crash in oil prices are having a huge effect on the global economy including that of Nigeria. The big drop in foreign exchange earnings with the resultant pressure in the country’s foreign reserve and the foreign exchange market is having a negative effect on the value of the naira.

READ MORE: CBN reacts to exchange rate policy change, says Naira not “floated”

The CBN had yesterday suspended indefinitely the sales of foreign exchange to the Bureau De Change operators. The CBN’s action was in response to a letter dated March 24, 2020, by the BDCs recommending the CBN to declare market holiday on its weekly bidding pending the re-opening of the nation’s borders and the control of Covid-19 (coronavirus).

The suspension according to the Association of Bureau De Change Operators (ABCON) was as a result of the shutdown of land, air and sea border by a lot of countries globally and as such has reduced the number of travellers and the demand for foreign exchange by travellers

At the Investors and Exporters (I&E) forex window on Thursday, the local currency depreciated by 1.39 percent to close at N385.53kobo per dollar, data from FMDQ show. The naira weakened to 361 to the dollar on the official market, supported by the central bank.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

2 Comments

2 Comments

  1. Bukola

    March 27, 2020 at 7:16 pm

    Does this mean i cannot change my dollar?

  2. Onyeka evans

    April 2, 2020 at 3:57 pm

    Good afternoon Chike,pls can u help me on this difficult moment of importing in Nigeria due to naira devaluation n up surge in foreign currency,am only a small importer looking for daily bread….my question is”wat can I do if I have cash at hand,cos am already loosing money bt this sit at home,my money is disappearing on daily basis due to family expensis..pls help

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