Investors, exporters trade less forex, as exchange dollar rises against Naira

Admin
3 Min Read


The total foreign exchange transacted on Monday in the official market was $55.10 million, falling below the value transacted the previous session by 65.9 per cent.

Ripples Nigeria had reported last week Friday that the value of foreign exchange traded was $161.91 million, which is $106.81 million drop when compared to Monday’s transaction.

Investors and exporters had traded the foreign exchange at the cost of N464/$1 at the end of the session, in contrast to the N462.33/$1 they exchanged Naira for Dollar on Friday.

Although during trading on Monday, investors and exporters had paid as much as N467/$1 and as low as N460/$1, before the worth of the Dollar settled at N464/$1.

In addition, the Pound sterling closed trading on Friday at N577.1/£1, indicating the value of the Naira appreciated considering both currencies exchanged for N580.6/£1 the day before,

READ ALSO:Naira gains against Dollar in official market, hits N750 in black market

This is according to the rate reported by the Central Bank of Nigeria (CBN) on Monday, which also disclosed that the Naira to Euro rate was N502.3/€1 as of Friday, falling below the N504.1/€1 posted on Thursday.

Ripples Nigeria noted that the supply of foreign exchange has been scarce in the country, and this has affected the ability of import-dependent companies in conducting their businesses.

For instance, the foreign financial obligations of FrieslandCampina WAMCO Nigeria, producer of Peak milk and three crowns, piled up to N14.1 billion because the company was unable to source for forex.

Similarly, Nigerian Breweries has an outstanding payment of €110 million due to the scarcity of Dollars and Euros.

Also, Unilever Nigeria had to end the production of its popular brands; Omo, Sunlight and Lux, in a bid to reduce exposure to devaluation and currency liquidity.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now



Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *