• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Currencies

Naira drops further at the black market despite appreciating at I&E window 

Chike Olisah by Chike Olisah
June 28, 2020
in Currencies
COVID-19 could save naira from depreciating further, Many odds against the naira, Naira forwards and parallel market crash puts pressure on official exchange rate, Naira appreciates to N386.94 to $1 at investor and exporters window. , Naira set for recovery as ABCON issues guideline to members for forex sales resumption, Naira falls against the Euro, British pound sterling but gains against the U.S dollar, Naira falls at black market, dollar liquidity remains relatively low  , Forex, Naira drops further at the black market despite appreciating at I&E window 
Share on FacebookShare on TwitterShare on Linkedin

Forex turnover at the Investor and Exporters (I&E) window had a rebound on Friday, June 26, 2020, as it rose by 144.68%, a significant increase from what was recorded the previous day in the foreign exchange market. This is according to data from the FMDQOTC, an exchange where forex is traded by foreign investors and exporters.

According to the data tracked by Nairametrics, forex turnover increased from $14.68 million on Thursday, June 25, 2020, to $35.92 million on Friday, June 26, 2020, representing a significant increase of 144.68%, day on day. while the percentage increase in turnover appears huge, it is still a far cry from the $200 million recorded in January 2020.

Although there seems to be an improvement in liquidity in the foreign exchange market, the volatility and uncertainty of the market remains due to liquidity shortages across markets.  Liquidity remains quite tight in the foreign exchange market, with the average turnover in the I&E market significantly down to about $45.5 million in the month of May compared to $297.5 million that was recorded in January.

RelatedStories

Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu

Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu

June 28, 2025
CBN, forex

Nigeria’s FDI drops by 19% to $250 million in Q1 2025 – CBN 

June 27, 2025

Several reports tracked by Nairametrics indicate that the accumulated demand for forex in the market could be between $1.5 and $5 billion as supply shortages persist. Forex shortages have persisted since the crash in oil prices coincided with the global lockdown due to COVID-19. The rise in demand and contrasting drop in supply has called for another round of devaluation, which the CBN has insisted it has plans to implement. A devaluation last occurred in March. The activities of the speculators seem to have continued unabated.

READ MORE: Naira falls big at the black market as demand pressure persists

Speculators have thus patronized the parallel market, otherwise known as the black market, thereby widening the gap between it and the I&E window. The CBN maintains that the perceived demand cannot be substantiated as the lockdown induced by the COVID-19 pandemic suggest demand should be low due to travel restrictions and drop-in economic activities.

Further decline in liquidity could further fuel speculations in the black market where the exchange rate has traded at a premium of N60 over the last few weeks.

Exchange rate  

In related news, the exchange rate on the I&E window reversed its earlier consecutive days of decline as it appreciated on Friday, closing at N386.33 to a dollar, compared to the N387.27 to a dollar that was reported on Thursday, June 25, representing a 94 kobo gain. The opening indicative rate was N386.36 to a dollar for Friday. This represents a gain of 72 kobo when compared to the N387.08 opening rate recorded on Thursday.

At the black market where forex is traded unofficially, the naira depreciated further by N3 to close at N460 to a dollar on Friday, as against the N457 to a dollar on Thursday. The rate at the start of the week was N455 to a dollar.

Nigeria continues to maintain multiple exchange rates comprising the CBN official rate, the BDC rates, and the NAFEX (I&E window). Nairametrics reported last week that the government is mulling unifying the multiple exchange rates in a bid to increase the amount available for state governments to share.

READ MORE: Naira recovers sharply at black market but falls at I&E forex window

The contrasting performance indicates increasing demand pressure in the foreign exchange market especially at the retail end of the market.

The CBN Governor, Godwin Emefiele, had announced plans during an investors conference organized by Citibank, to unify the exchange rate around the NAFEX rate. Financial analysts and business leaders have expressed their support for the policy as this will ensure more transparent management of the foreign exchange market, eliminate forex arbitrage being enjoyed by currency speculators, attract more foreign investors (both foreign direct investments and foreign portfolio investments) and so on

Nairametrics had earlier reported of plans by the federal government not to source for debt from the Eurobond market as it will shift focus to domestic borrowing and from concessionary sources. The government also through the Director General, Debt Management Office, Patience Oniha, confirmed that Nigeria will not be seeking for debt relief from its commercial and bilateral creditors.

 


Follow us for Breaking News and Market Intelligence.
Tags: Black MarketBusiness NewsCBNforexGodwin EmefieleNAFEXNairaNigeria News
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

Related Posts

Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu
Digital Media

Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu

June 28, 2025
CBN, forex
Financial Services

Nigeria’s FDI drops by 19% to $250 million in Q1 2025 – CBN 

June 27, 2025
CBN Governor Yemi Cardoso to be honoured at Nairametrics Capital Market Awards for monetary policy reforms and banking sector recapitalization 
Financial Services

Focus on ‘African-led, African-owned’ growth, digital transformation – Cardoso tells African leaders at Afreximbank AGM 

June 25, 2025
Currency volatility: Intra-day high records N1755/$1 on sustained demand pressure  
Currencies

Naira falls N2,200 against British Pound Sterling 

June 21, 2025
Naira , dollar, exchange rate
Currencies

Exchange rate disparity returns as Naira appreciates to N1,545/$ officially, depreciates to N1,605/$ on parallel market 

June 21, 2025
Ugodre Obi-Chukwu named EY Entrepreneur (emerging category) of the year 2023
Financial Services

Banking sector sell-offs present buying opportunity — Nairametrics CEO, Ugodre Obi-Chukwu 

June 19, 2025
Next Post
Just in: FG bars Air France, KLM and other foreign airlines, FG to spend N13 billion for automation projects in 4 airports, domestic flights, international passengers, Coronavirus: FG enforces immediate screening of travellers at airports with new directive

FG states international passengers to arrive 5 hours before departure, discloses other protocols 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng

first bank
Zenth Bank








DUNS

Recent News

  • Elon Musk’s xAI raises $10 billion in debt and equity financing to accelerate AI innovation
  • FG spends N611.71 billion to service first domestic dollar bond in March 
  • CAC launches AI powered registration portal, promises business registration within 30 minutes 

Follow us on social media:

Recent News

Elon Musk’s xAI raises $10 billion in debt and equity financing to accelerate AI innovation

Elon Musk’s xAI raises $10 billion in debt and equity financing to accelerate AI innovation

July 1, 2025
Nigeria’s first domestic dollar bond records 180% subscription 

FG spends N611.71 billion to service first domestic dollar bond in March 

July 1, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics