As many prospective state economy opens up this week amidst market uncertainty the Nigerian local currency suffered a major set back.
Naija News learnt that the local currency (Naira) depreciated to N445 to a dollar on Monday, June 2, 2020. This shows a loss of N5 (or 1.14% decline) when compared to the N440 to a dollar that was recorded last week Friday.
The latest depreciation of naira can, however, be related to the uncertainty resulting from the delayed resumption of sales of dollars to the Bureau De Change (BDC) operators.
Meanwhile, as the organisation of the Petroleum Exporting Countries (OPEC) set to organise it quarterly meeting on Thursday, The price of Brent crude rose greatly to a near three-month high with a new record of 40 dollars per barrel. Naija News Understands that Nigeria and other oil traders that major in oil production might extend oil production cut of 9.7 million barrels per day (BPD), or about 10 per cent of global output, into July or August.
However, despite the improvement in the price of crude oil around the world and its positive effect on the country’s foreign exchange earnings, the reopening of the economy is expected to put more pressure on the naira as more businesses try to meet up with accumulated obligations.