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Naira drops as demand for FX increases

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The demand for foreign exchange (FX) by the Investors and Exporters (I&E) market weakened the value of the Naira

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A display of the US dollar bills and Naira notes
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The demand for foreign exchange (FX) at the Investors and Exporters (I&E) market weakened the value of the Naira at the end of last week.

On Friday Nigerian currency value dropped by 25 Kobo or 0.05 percent against the US Dollar to N461.50/$1 compared with the previous day’s N461.25/$1.

The FMDQ Securities Exchange reported that forex trades at the official market stood at $96.81 million, with traders bidding the Naira to the greenback as high as N462.00/$1 and as low as N440.00/$1 during the session.

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However, the exchange rate of the local currency to its US counterpart remained unchanged yesterday at N760/$1 in the Peer-2-Peer (P2P) window of the market.

Similarly, the domestic currency maintained stability against the United States currency at N748/$1 at the close of business on Friday in the parallel market window.

But in the interbank segment, the Naira depreciated against the British Pound Sterling by N8.64 to close at N562.71/£1, in contrast to Thursday’s rate of N554.07/£1 and fell by N1,37 against the Euro to trade at N493.09/€1 versus the preceding day’s N491.72/€1.

 

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