Despite scarcity of the new Naira banknotes in circulation, the local currency dipped in exchange value against the US dollar at the parallel market on Thursday, trading at an average of N740/$1 in the early trading hours.
The latest exchange rate of the Naira represented a depreciation of 0.68% compared to N735/$1 it traded during the previous day’s trading session.
Some black market FX dealers in the Federal Capital Territory (FCT) during a telephone chat with our correspondent attributed the loss of value by the local currency to the dollar to low business as investors were becoming careful in their transactions as change of government draws closer by the day.
One of them, Malam Aminu said: “Everybody appears not to be in interested in doing big business now. So, there is low demand for all currencies here. We are hoping that after the coming in of the new administration, people will engage in more FX business deals.”
However, the Naira appreciated by 0.54% against the Pound Sterling to trade at an average of N925/£1 as against the N930/£1 it traded in the previous day’s trading session.
Similarly, the local currency also gained in its exchange rate with the Euro by 0.62%, trading at an average of N805/€1 compared N810/€1 it traded on Wednesday.
Analysts have observed that in recent weeks the Naira had been exchanging at relatively steady rates against the US dollar and other foreign currencies due to what one of them termed “low economic activities as political situation in the country remains a little bit worrisome.”
