Investing.com - Financial Markets Worldwide

Nigeria naira eases on black market as FX demand pressure resurfaces -traders

Published 13/11/2020, 15:37
© Reuters.

By Chijioke Ohuocha
ABUJA, Nov 13 (Reuters) - Nigerian naira eased 0.85% on the
black market on Friday to 470 against the dollar as demand
pressure resurfaced on the unofficial currency market, in the
wake of dollar shortages in the economy, traders said.
Traders had expected the currency to trade flat on the black
market on the hopes that higher oil prices will boost Nigeria's
foreign exchange supplies. Global oil prices rose to a more than
two-month high above $45 a barrel on Wednesday. Oil prices fell on Friday, pressured by fears about a slow
recovery in the global economy and fuel demand due to rising
coronavirus infections, but hopes for a vaccine kept the market
on track for a second straight weekly gain. Dollar demand has been swelling and piling pressure on the
naira. Importers with past due obligations have scrambled for
hard currency while providers of foreign exchange, such as
offshore investors, have exited.
Traders said importers were seeking dollars to buy goods
ahead of Christmas sales next month.
The dollar was quoted at 381 naira on the official market.
It traded at 386.50 naira on the over-the-counter spot market
NAFEX=FMDQ , widely quoted by investors and importers, on thin
volumes.
Nigeria's central bank has managed demand in the past by
restricting access to forex for goods it says can be produced
locally. It recently ordered lenders to restrict bank accounts
of individuals or firms dealing with black market traders, they
said.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.