Naira against dollar hit N769, falls heavily against euro, pound ahead of 2023 general election

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The Naira appreciated against the US Dollar in the black market on Tuesday, 21 February 2023 by N3 to settle at N767/$1 compared with the N770/$1 it was traded on Monday.

It was also the same outcome at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market.

FMDQ securities report that the domestic currency gained 17 Kobo or 0.04 per cent against the greenback to close at N461.33/$1 compared with the preceding session’s rate of N461.50/$1.

The reason for Naira's improvement in the exchange rate against the dollar can be attributed to an increase in forex supply.

A total of $48.28 million was exchanged among participants, which is 19.8% or $8.00 million higher than the amount of $40.28 million that was recorded the previous day.

However, the story changed for the Naira against the dollar at the foreign exchange market's Peer-to-Peer (P2P) arm.

P2P is a market most used by fintechs to attend to the dollar demands of their customers.

Legit.ng gathered that the Nigerian currency depreciated against its American counterpart at the P2P during Tuesday trading session by N1 to close at N769/$1, in contrast to Monday, February 20 value of N768/$1.

Another market the naira witnessed heavy beatings against was at the interbank market.

The interbank foreign exchange (FX) market is decentralized, where banks and other financial institutions trade currencies.

This market allows banks to buy and sell currencies to meet the needs of their clients.

After Tuesday trading data obtained from the CBN shows that the Pound Sterling and the Euro was stronger after against the Naira.

The Naira weakened by N7.71 against the British currency, closing at N557.82/£1 compared to the previous rate of N550.11/£1. Similarly, the Naira lost N1.40 against the Euro to sell at N491.07/€1, compared to Monday's closing rate of N489.67/€1.

At the black market Naira rates reports that one pounds exchanges at N914.526 while the Euro sells at N812.380 to a dollar.