By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The naira traded on Friday at N199.05 to a dollar, as the greenback had a poor week globally following mediatory tone of the US Federal Reserve during this week’s FOMC meeting.

The Nigerian local currency lost 104 basis points (bps) and 294 bps against the pound sterling and euro to close at N297.65/£1 and N215.96/€1 respectively, a Cordros report said.

According to the report, the inter-bank market was illiquid as only a few oil majors supplied dollars to the market. “The CBN intervened to support the market but supply was relatively low in comparison to total demand,2 the update added.

Proshare daily exchange monitor said a new investigation reveals that the foreign exchange market operates in three (3) major segments viz; the interbank market, the Bureau De Change (BDC), and the ‘organised’ unofficial exchange rate market.

“While the interbank market trades within the N199-N200 to a dollar band, the BDCs sell at N225/$1. Prices at the BDCs have remained fairly stable for a while because there is no dollar to affect the supply/demand equation. The BDCs serves majorly the retail segment of the market,2 the Proshare investigation revealed.

The investigation disclosed that the organised unofficial dollar market comprises of those buyers of dollar who are holding, hoarding, waiting for elections to be over and those who use dollar for political patronage. “The naira/dollar rate in this market is between N255 and N260 to a dollar,” the report affirmed.

Proshare reports the naira on Friday traded against the pounds sterling and euro at N325 and N245 respectively.