How Nigeria’s Naira Fared Against US Dollar On Parallel Market (Oct. 18)

The Nigeria’s currency Naira on Wednesday exchanged at N361.50 to the United States Dollar at the parallel market, maintaining same rate for the past one-week.

The News Agency of Nigeria (NAN) reports that the Pound Sterling and the Euro traded at N475 and N425, respectively.

At the Bureau De Change (BDC) window, the naira was sold at N361.50, while the Pound Sterling and the Euro closed at N475 and N425, respectively.

Trading at the investors’ window saw the naira closed at N360.27.

Traders said that activities at the market had remained dull as very few customers were patronising them.

A reliable source also told newsmen that only about 1000 of its members bided for dollars on Monday because they had been selling at a loss for some months.

It is understood that BDCs buy dollars at N360 from the CBN and sell at N362 per dollar.

Following the drop in rate to N362, BDCs had been selling at a loss, leading to the boycott of the CBN window by some BDCs.

Meanwhile, the Central Bank of Nigeria (CBN) has said that the availability of credit to the corporate and households sectors increased during the third quarter (Q3) of 2017, while projecting further increase in the last quarter of the year (Q4).

Though the apex bank did not give figures on bank credits during the period in a survey report titled, “Credit Conditions Survey Report”, it said that the Q3‘17 credit condition survey of households, small businesses and corporate entities indicated increases in the availability of secured, unsecured and corporate credit.

It also said that spreads on overall secured and corporate lending to household widened during the period.

The report stated: “Lenders reported that household demand for total unsecured lending increased in the current quarter, and was also expected to increase in the next quarter.

“Demand for corporate lending increased across all firm sizes in the review quarter, except demand for credit card from small businesses and lending from other financial corporation’s (OFCs).”