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UPDATE 1-Nigeria naira ease on black market after moves to unify official FX rate -traders

Published 09/07/2020, 19:13
Updated 09/07/2020, 19:18
© Reuters.

(Adds details, background)
By Chijioke Ohuocha
ABUJA, July 9 (Reuters) - Nigeria naira NGNFX=BDCN fell to
463 on the black market on Thursday from 461 the previous
session after the central bank this week moved to unify the
country's multiple exchange rates, traders said.
Traders bid up rates in anticipation of demand shifting to
the unofficial market. The central bank has yet to resume dollar
sales to retail currency agents mostly patronised by individuals
and to foreign investors seeking to repatriate funds.
Nigeria's naira NGN=D1 eased 5.5% to 380.50 on the
official market on Tuesday, after the central bank sold dollars
to lenders at a lower rate, bowing to pressure from
international lenders to unify its multiple exchange
rates. The World Bank is expected to approve a $3 billion budget-
support loan for Nigeria.
The central bank last month said it will work towards the
gradual unification of exchange rates across all forex windows.
The governor Godwin Emefiele said then he would not unify rates
close to the black market level because demand on that market
was speculative. But dollar shortages have plagued the economy after a
coronavirus-induced oil price crash slashed government revenues
and weakened its currency, shifting demand to the unofficial
black market where the naira is trading much weaker.
The naira held steady at 381 per dollar on the official
market, backed by the central bank but traded lower at 386.96 on
the over-the-counter spot market NAFEX=FMDQ , widely used by
investors and importers.

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