The foreign exchange market on Tuesday closed with the Naira gaining N1.13k as the dollar was quoted at N385.00k compared with N386.13k traded on the previous day at the Investors and Exporters (I&E) forex window.
The market opened in the morning with an indicative rate of N385.71k/$ on Tuesday, gaining marginally by 0.02 percent from N385.79k at which it opened on Monday at the I&E forex window, data from FMDQ showed.
The Central Bank of Nigeria (CBN) in March 2020 adjusted the exchange rate from N360 to N380/US$ at the I&E window, to stem the pressure in the foreign exchange market.
The pressure on the foreign exchange intensified on Tuesday as the dollar traded at N420 at the black market, after oil price crashed to $20 per barrel.
The price of Brent crude has fallen to as low as $20 per barrel as at Tuesday, following the outbreak of coronavirus pandemic globally.
With the current exchange rate, it implies that the Nigerian currency is losing N2.50k per dollar compared to N417.50K traded the previous day.
The dollar can only be purchased from a very few operators in Lagos as many others are not trading due to the Covid-19 lockdown announced by the Federal Government.
“Actually for one month now I have been at home. I have not gone to market and there has not been any transaction since then,” one of the dealers said.
