Capital Market Featured

Naira loses against dollar at the parallel market

Barely 24 hours the Central Bank of Nigeria (CBN) resumed dollar sales at the Bureau De Change (BDC) sector, the Naira have reversed the gain made against the dollar.

The Naira traded at N441 to the dollar on Tuesday, losing N6 from N435 recorded on Monday at the parallel market in Lagos.

The Pound Sterling and the Euro closed at N585 and N515, respectively.

At the BDC window, the naira was sold at N386 to a dollar, while the Pound Sterling and the Euro closed at N585 and N515, respectively.

Trading at the investor’s window saw the naira closing at N386.21 to a dollar as investors traded a total of 45.22 million dollars.

The naira, however, closed at N379 to a dollar at the official CBN window.

Inspite of the sale of 51.8 million dollars to 5, 180 BDCs on Monday, the impact of the intervention was yet to be significantly felt.

Meanwhile, Prof Sheriffdeen Tella, a Senior Economist at the Olabisi Onabanjo University Ago-Iwoye, Ogun, noted that the volume of FOREX sold to BDCs was insignificant relative to the demand for dollars.

Tella said that the demand for dollars by genuine importers and for overseas school fees was very high.

“Unless the CBN is consistent with its interventions at the foreign exchange market in the weeks ahead, the naira may continue to fall,” Tella said.

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