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UPDATE 1-No quotes on Nigeria's official forex market -traders

Published 11/05/2021, 17:40
Updated 11/05/2021, 17:42
© Reuters.

(Adds spot FX rate and black market quote)
By Chijioke Ohuocha
ABUJA, May 11 (Reuters) - No quotes for the naira NGN=D1
were available on Nigeria's official market on Tuesday, in its
fifth trading session of this month, traders said.
The official market rate, backed by the central bank, has
been stuck at 381 naira to the dollar for almost a year after
two currency devaluations. The currency closed at 381 naira on
Monday, its last session.
On the over-the-counter spot market NAFEX=FMDQ , the
currency is trading within a range of 410 to 422 naira against a
dollar. It was quoted at 483 naira on the black market
NGNFX=BDCN on Tuesday.
Rising dollar demand has put pressure on the naira as
providers of foreign exchange, such as offshore investors, have
exited after the COVID-19 pandemic triggered a fall in global
oil prices.
The situation has frustrated businesses and prompted calls
from the World Bank for Nigeria to unify rates to attract
inflow.
The central bank has been trying to narrow the gap between
the official and black markets through direct interventions. It
extended an incentive offer last week to recipients of dollar
remittances to try to encourage more diaspora
inflow. Trading on the currency is due to resume on Friday because
of a bank holiday in Nigeria on Wednesday and Thursday.

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