As demand for foreign currencies decreased on Thursday, the local currency outperformed the US dollar in every area of the foreign exchange (FX) market.
On Thursday, the Nigerian Naira strengthened against the dollar in the Investors and Exporters (I&E), black market, and Peer-2-Peer (P2P) windows of the foreign exchange market.
According to research on the FMDQ Securities Exchange website, the value of the nation’s legal tender rose during the session by 73 Kobo, or 0.16 percent, to sell for N461.17/$1 as opposed to N461.90/$1 on the previous trading day.
This was aided by a decrease in the demand for foreign exchange in the I&E segment yesterday of 41.2 percent, or $62.31 million, from the $151.26 million seen in the midweek session to $88.95 million.
In the parallel market as well, the local currency increased by N4 to quote at N738/$1 from N742/$1 in the previous day.
Additionally, the Naira strengthened against the US dollar in the peer-to-peer market by N4 to settle at N755/$1, up from N759/$1 on Wednesday.
However, in the interbank market, the Naira declined against the Pound Sterling on Thursday by N2.15 to trade at N551.18/£1 as opposed to N549.03/£1 on Wednesday, while it fell against the Euro by N2.60 to end the day at N487.75/€1 as opposed to N485.15/€1.