Naira stable across market as cash withdrawal policy takes off

The Naira was relatively stable against the United States Dollar in the different segments of the foreign exchange (forex) market on Monday.

This happened as the new cash withdrawal policy of the Central Bank of Nigeria (CBN), commenced on the same day.

Many traders chose not to act as they observed how the cash withdrawal policy would affect the demands for dollars and other foreign currencies.

Data from FMDQ securities showed that in the Investors and Exporters (I&E) segment of the market, the exchange rate of the Nigerian Naira to the greenback remained unchanged yesterday at N461.67/$1.

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The market recorded low demand for forex, as the turnover stood at $47.13 million.

At the Peer-to-Peer (P2P) window of the FX market Naira gained N2 to trade at N768/$1 compared with last Friday’s rate of N770/$1.

Also, in the parallel market, the Nigerian currency closed flat against its American counterpart during the session at N742/$1, as most currency hawkers were almost idle due to low trading activity.

However, in the interbank segment, the Naira witnessed shelling against the Pound Sterling as it depreciated by N6.83 to N548.39/£1 from N541.56/£1, and against the Euro, it shrank by N4.48 to trade at N482.56/€1, in contrast to last Friday’s rate of N478.08/€1.

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