By InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian local currency the naira on Monday sold N225/$1 in the black market, Proshare’s daily exchange monitor said.

 “Today, the naira exchanged at the parallel market for N225 to a dollar while the pounds sterling and euro traded for N335/£1 and N238/€1 respectively,” the report affirmed. 

According to the daily exchange monitor, the foreign exchange market still operates in three (3) major segments namely; the interbank market, the Bureau De Change, and the ‘organised’ unofficial exchange rate market.

It disclosed 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 still around N255 and N260 to a dollar,” the Proshare daily exchange monitor added.

Meanwhile Cordros update reported that the naira gained 11 basis points (bps) and 37 bps compared to the greenback and pound sterling to trade at N199.03/$1 and N296.91/£1 respectively. “However, the local currency declined by 60 bps on the euro to trade at N217.29/€1,” the Cordros report said.

Investment One Research reported that the Nigerian local currency depreciated at the interbank market by 1.33 percent to close at N199.65/$1.

It said in the same manner, the naira weakened against the euro by 0.63 percent to trade at N217.25/€1 from previous levels.

The report further affirmed that relative to the pound sterling however, the naira appreciated by 0.35 percent in the session to close at N296.64/£1.

“We note that with the external reserves at $29 billion (approximately.  Four (4) months exports cover), the ability of the apex bank to continue to defending the naira is limited,” Investment One report noted.

The Central Bank of Nigeria (CBN) in its usual email statement reported the interbank closing rate as March 23, 2015 was N197.00