Naira hits N364/$ at parallel market as Euro slump 0.2%

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The Nigerian currency, on Tuesday, January 23, soared against the United States of America Dollar at the parallel segment of the Nigerian Foreign Exchange Market.

This appreciation came after the Central Bank of Nigeria, CBN, pumped another $210 million to meet customers’ requests in the forex market.

The local currency gained one point against the greenback to close the day at N364/$1. Meanwhile, against the British Pound Sterling, the naira exchanged at the rate of N500 and exchanged at the rate of N440 against the European Single Currency, Euro.

The recent appreciation of the Naira can be attributed to intervention of the CBN at the foreign exchange market

The apex Bank’s acting Director, Corporate Communications, Mr. Isaac Okorafor, in a statement on Monday, January 22, in Abuja said the fund would ensure that legitimate demands for foreign exchange are met.

According to him, the CBN offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million.\

He said also that customers needing foreign exchange for tuition fees, medical payments and Basic Travel Allowance, among others, were also allocated the sum of $55 million.

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 Meanwhile, the Euro, was down 0.2 percent at $1.2240 EUR= after gaining 0.3 percent overnight. The common currency was thin reach of a three-year peak of $1.2323 set on Wednesday.

The euro was supported ahead of the outcome of the European Central Bank’s meeting on Thursday, which could provide clues to future shifts in the central bank’s monetary policy.

Meanwhile, pound was a shade lower at $1.3961 GBP=D3 after touching $1.3992, its highest level since June 2016’s vote for Brexit, on optimism that Britain will reach a favorable divorce deal with the European Union.

The Australian dollar and the Canadian dollar declined the most against the greenback, falling 0.7 percent and 0.3 percent each.

The yen weakened to 111.15 yen to the dollar, down 0.2 percent from U.S. levels, after BoJ Governor Haruhiko Kuroda reiterated his commitment to monetary easing.

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