Naira strengthens to N422 at parallel market

The Nigerian currency on Friday, September 2 gained some upper hand over the American dollar at the parallel foreign exchange(forex) market, but lost some grounds to the greenback at the interbank market.

The naira was exchanged at a rate of N422 to a dollar, making the Nigerian money to score 3 points from the N425 it was exchanged with a dollar on Thursday, September 1.

More so, one British Pound sterling and a Euro were bought for N535 and N464 respectively.

At the interbank sector of the forex market, the naira spot rate depreciated to N214.77 against the dollar, compared to spot rate of N313.31 to the United States dollar exchanged on Thursday.

The local unit at the same official window, was exchanged at N404.79 and N341.41 to one Pound Sterling and one Euro, respectively.

Meanwhile, currency dealers at Afrinvest (West) Africa Limited said the derivatives product launched by the Central Bank of Nigeria (CBN) on the FMDQ OTC platform has continued to gain traction, particularly the Naira Settled over the counter (OTC) Futures.

The total value of futures contract as at Thursday, 1st September stood at US$2.8billion, rising US$1.1billion month on month (M-o-M).

Similarly, News Agency of Nigeria reported on Sunday that Many Nigerian pilgrims currently in Saudi Arabia for this year’s pilgrimage say they have cut down on their spending following the fall in the value of the Naira.

It said  a number of the pilgrims interviewed in Medinah, Saudi Arabia said they have restricted their spending to only the basics.