Naira begins week on shaky ground amid drop in Dollar supply

Naira is starting the new week on shaky ground amid a drop in Dollar supply over the weekend.

Data from FMDQ securities showed that at the I&E window on Friday Naira depreciated against the US dollar to close Friday trade at N446.33/$1.

This represents a 0.3 per cent or N1.33 loss in value compared to the previous day’s exchange rate of N445/$1.

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The Naira’s poor performance was as FX turnover reduced by $28.63 million or 19.6 per cent to $117.26 million, lower than the $145.89 million reported a day earlier.

However, at the black market and Peer-to-Peer (P2P) window of the foreign exchange (FX), Naira recorded an improved rate.

Checks showed that Naira closed stronger against the United States Dollar at the Peer-to-Peer (P2P) window of the foreign exchange (FX) market on the last trading session of last week by N1 to sell at N786/$1 compared with the previous day’s exchange rate of N787/$1.

Traders on the streets of Lagos, also known as the black market, sold the dollar at N775/$1 a N2 appreciation in contrast to the N777/$1 it closed on Thursday.

Meanwhile, in the interbank segment, the Nigerian Naira closed flat against the Pound Sterling and the Euro yesterday at N526.97/£1 or N455.56/€1, respectively.