Saturday, Sep 26th 2020 9:01 PM
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Market Digest Nigeria

Finance

Naira drops to N445/$, despite CBN’s sale of $50m to BDCs

Naira declined to N445 to the United States dollar on the black market on Monday, the same day Bureaux De Change (BDCs) resumed operations following sales of foreign exchange worth $50 million to them by the Central Bank of Nigeria (CBN).

A view of the deserted central business district is pictured on the first day of a 14-day lockdown aimed at limiting the spread of coronavirus disease (COVID-19) in Lagos, Nigeria March 31, 2020. REUTERS/Temilade Adelaja – RC22VF961ZXM

According to abokiFX, which collates rates from informal street traders in Lagos, the local currency had exchanged at N440 to a dollar on Friday, before crumbling to N445 on Monday.

Meanwhile, the local currency was quoted at N386 against the dollar at the over-the-counter spot market used by investors and exporters, 13k stronger than the N386.17 at which it closed on Friday.

The exchange rates at this window oscillated between a high of N384 to a dollar and a low of N394.63 during the intraday trading before settling at N386 at the end of trade.

On the supply side, forex turnover at the window tumbled to $45.22 million, 49.3% lower than a trade volume of $89.15 million posted on Friday.

The daily forex sales for last week averaged $58.52 million translating to a substantial improvement from the $23.19 million recorded the week before.

The forex turnover on the window in August fell to $857 million from the $937 million reported in July.

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