Naira down by 0.16% at interbank market

The naira depreciated by 0.16 per cent  today at the spot foreign exchange (FX) market to close at  N314.14 in contrast to yesterday’ appreciation of 1.16 per cent when N313.65 was exchanged for one dollar according to trading information from the Financial Market Dealers Quote (FMDQ).

At the parallel market, naira was bought from market operators at N388 and sold at N394 compared to previous day’s rates of N390 and N394 respectively, the Euro was bought at N425 and sold at N430 also in contrast to previous day’s rates of N423 and N437 while the naira slumped to the Pound Sterling having been bought at the rate of N497 and sold at N505 compared to Tuesday’s rates of N495 and N500.

The Central Bank of Nigeria’s rates as obtained from its website showed that the US Dollar was bought at the rate of N308 and sold at N309, compared to previous rates of N308.8 and N309.8, while the Pounds Sterling was bought at the rate of N400.6 and sold at N401.9, also in contrast to Tuesday’s rates of N400.7 and N402 respectively. The Euro was bought at N347.2 and sold at N347.8 compared to previous day’s rates of N348.5 and N349.8 respectively.

At the end of the Bankers’ Committee meeting in Abuja on Tuesday, the Managing Director of UBA, Kennedy Uzoka, told journalists that the CBN decided to increase the limit to drive down the price of getting FOREX.

Mr Uzoka said the decision was informed by the plight of parents and guardians who have not been able to get enough FOREX to pay the school fees of their wards at schools, particularly at this time that schools are about to open and people would require Basic Travel Allowance (BTA) and personal transport allowance (PTA) to travel. Members of the bankers’ committee urged BDCs to henceforth approach banks and apply for FOREX allocations foreign exchange. The bankers’ committee said the decision was not a reversal of the previous one, but a review as part of efforts to help the country find solutions to the FOREX supply crisis.a