Dollar Rate Rises In Black Market, Naira Gains Against Pound, Euro

On Monday, June 5, the average dollar rate in the black market was N743.9/$1 before noon, trading higher than the N743.3/$1 rate reported last week Friday.

However, the pound sterling traded downward, as the naira appreciated to N937.2/£1, in contrast to the N946.1/£1 rate the British currency was offered the day before. 

Similarly, the naira to euro exchange rate closed down to N808.2/€1. This is N4.6 kobo or 0.5% difference when compared to Friday’s rate of N812.8/€1. 

In the official market on Friday, the dollar rate remained stable at N464.67/$1 for two consecutive days, as it closed at the same rate as that of Thursday.

This is according to the foreign exchange data released by the FMDQ Exchange, which also showed that while the dollar closed at N464.67/$1, it initially traded at a high and low of N467/$1 and N460/$1, respectively during trading.

Amid the stability, the value of foreign exchange transactions recorded by investors and exporters dropped by $152.07 million or 60.59%. 

The FMDQ data disclosed that foreign exchange traders reported $98.90 million in forex transactions on Friday, falling below the $250.98 million transacted on Thursday. 

Prime Business Africa noted that the drop occurred at a time discussion over the scarcity of foreign exchange took centre stage. 

President Bola Tinubu promised that: “We shall ensure that investors and foreign businesses repatriate their hard earned dividends and profits home.” 

Foreign airlines are looking to hold Tinubu to his promise, as the Regional Vice President, Africa and Middle East, International Air Transport Association (IATA), Kamil Alawadhi, said he hopes he will immediately resolve 50% of foreign airlines trapped funds in Nigeria, then provide the remaining 50% in a couple of months. 

Alawadhi said: “Every penny counts, airlines have been affected by the pandemic. Airlines need their funds to run their operations smoothly. We will engage the new government in Nigeria to get the blocked funds repatriated as quickly as possible.”