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Business News of Monday, 26 September 2022

Source: premiumtimesng.com

Naira plunge continues as dollar demand grows

Naira and dollar notes Naira and dollar notes

Naira gained marginally against the U.S. dollars on Friday, appreciating 0.04 per cent a day after it fell at the spot market. But overall, the currency continued a fall that has been made worse by increasing demand for dollars.

The currency opened trading at N434.83 per $1 but closed at N436.33 to a dollar as against N436. 50 it traded in the previous session on Thursday, data from the FMDQ website, where forex is officially traded, showed.

The local unit traded between N436.50 and N436.25 to a dollar within the past three weeks. It reached an eight-month low of N436.50 on September 7.

Weekly performance

On Monday, naira exchanged hands with the greenback at N436.50. It gained on Tuesday slightly by 0.06 per cent (N436.25).

But the currency weakened to N436.50 on Wednesday, the same rate it traded on Thursday. It gained marginally on Friday, closing at N436.33.

At the parallel market, naira lost significantly during the week, dealers said.

On Monday, traders said they bought the dollar at N710.00. It depreciated to N711.00 and N712.00 on Tuesday and Wednesday respectively, Abuja black market traders said.

On Thursday, when PREMIUM TIMES visited Wuse Zone 4, a famous trading spot in the Nigerian capital, the dollar was exchanged at N713.00.

On Friday, tradera said they bought the dollar at N714.00 and sold at N715.00 and above within the business period. This is against the N713.00 rate it exchanged hands with the greenback in the previous session on Thursday.

“Our people are selling as they like. It is not their fault, the banks are not giving us dollars anymore. That’s why you see the rate keep increasing on a daily basis,” a currency dealer at Udi Street in Uyo told PREMIUM TIMES.

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