Naira appreciates amid low demands for US dollar

For the second day running the value of Nigerian currency increased amid low demand for the US dollar.

Checks show that the Naira appreciated against the United States Dollar in the Investors and Exporters (I&E) and the Peer-2-Peer (P2P) windows of the foreign exchange (FX) market on Wednesday.

In the I&E market, which caters to the FX needs of business owners, the domestic currency gained 33 Kobo or 0.07 percent to close at N461.17/$1 compared with the exchange rate of N461.50/$1 on Tuesday.

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Low transactions in the spot market helped the local currency gain strength yesterday as the turnover stood at $55.52 million, 25.6 percent or $19.06 million lower than the $74.58 million carried out in the preceding session.

Equally, in the P2P arm of the FX market, the domestic currency appreciated against its American pair by N1 yesterday to settle at N760/$1, in contrast to the N761/$1 it was trading a day earlier.

Also, in the black market, the Nigerian currency closed stronger than the US Dollar by N1 to trade at N749/$1 compared with Tuesday’s exchange rate of N750/$1.

However, in the interbank window, the domestic currency weakened against the Pound Sterling by N2.47 to close at N557.87/£1 versus N555.40/£1, and against the Euro, it gained 96 Kobo to end the day at N495.36/€1 versus Tuesday’s N496.32/€1.