Naira Appreciates Against Dollar In Official Window, USD Up In Parallel Market

The dollar rate in the Investors’ and Exporters’ window of the official market closed at N740.60/$1 on Friday, the FMDQ Exchange disclosed.

According to a report obtained, the value of the naira appreciated by 5.21 per cent, with the worth of the United States currency dropping by N40.74 kobo.

Recall that at the end of trading in the Investors’ and Exporters’ window on Thursday, the exchange rate between both currencies settled at N781.34/$1.

The highest rate the dollar was sold during trading on Friday was N799.90/$1, while the lowest rate the American Greenback was offered was N738/$1.

Amid the N40.74 kobo decline in the price of the dollar, foreign exchange traders transacted $164.60 million worth of forex in the I&E window.

In the black market, the naira dropped in value, declining by 2.20 per cent, as the price of the dollar increased by N19.9 kobo.

This is according to data released by Naira Rates, a parallel market aggregator, which showed that the average dollar rate on Friday was N921.8/$1, up from N901.9/$1.

The average rate of the British currency, the pound, increased by N23.7 kobo to N1191.4/£1 in the black market, from the previous day’s N1167.7/£1 rate.

Similarly, the euro increased in value by 2.53 per cent, indicating N25.4 kobo was added to the average price of the European currency, as it exchanged for the naira at N1028.6/€1, against the preceding day’s N1003.8/€1.

Meanwhile, due to the increase in the price of the dollar in the parallel market, oil marketers have warned Nigerians that the cost of Premium Motor Spirit (PMS), also known as fuel, will rise to around N680-N750.

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the exchange rate between the naira and dollar will drive the price of fuel up, as scarcity in the official market has compelled oil marketers to depend on the black market for dollars.

Note: The value of the euro was edited to correct the exchange rate.

Fakoyejo Olalekan

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