Naira hits N388.84 against dollar at the spot market

The Naira is likely to keep falling due to surging demand for the U.S dollar as Nigeria’s Central Bank begins Fx sales to Nigerian banks ahead of the expected gradual easing of a COVID-19 lockdown, according to Reuters.

The naira was trading at N388.84 per dollar on the spot market, mostly used by foreign portfolio investors and exporters.

The Investors & Exporters FX Window (I&E FX Window) is the market trading segment for investors, exporters, and end users that allows for FX trades to be made at exchange rates determined by prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian FX market. The I&E FX Window was established by the Central Bank of Nigeria.

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Transactions eligible to access the I&E FX Window include Invisible Transactions (such as remittances for school fees, student maintenance allowances, Business Travel Allowance (BTA), Personal Travel Allowance (PTA), medical and other eligible transactions excluding International Airlines Ticket Sales’ Remittances), Bills for Collection, and any other trade-related payment obligations (at the instance of the customer).

The naira, this week, plunged to N460 against the American dollar at the black market, before the Central Bank announced yesterday that it would sell $100 million weekly to support people with dollar needs abroad and importers looking to restart economic activities.