The Nigerian Naira on Wednesday, February 14, depreciated for the second time this week to N360.37 per United States Dollar in the Investors and Exporters (I&E) window of the foreign exchange market.
Data from the Financial Market Dealers Quote (FMDQ) showed that the indicative exchange rate for the window rose to N360.37 per dollar, yesterday, from N360.22 per dollar on Tuesday, translating to 15 kobo depreciation.
The 15 kobo depreciation of the naira was in spite of the 12 percent increase in the volume of dollars traded in the I&E window.
The window recorded a turnover of $169.16 million from $151.55 million on Tuesday.
It was gathered that naira remained stable at N363 per dollar in the parallel market for the seventh consecutive business day.
- Senate probes scarcity of lower naira denominations
Earlier in the week, the Senate had said it was investigating the scarcity of lower naira denominations, which the lawmakers considered a threat to the economy.
The denominations are N5, N10, N20, N50, N100 and N200.
Following the adoption of a motion by Senator Peter Nwaoboshi (Delta-North) titled, ‘Scarcity of Lower Denomination Currency Notes,’ the Senate resolved to mandate the joint Committee on Banking, Insurance and Other Financial Institutions; and Finance to investigate the scarcity.
The committee was further asked to proffer lasting solution to the issue and report back within two weeks.
In the motion, Nwaoboshi said, “The Senate notes with serious concern the protracted scarcity of lower naira denominations.
“It is concerned that scarcity of N5, N10, N20, N50, N100 and N200 notes poses a severe threat to the economy of the nation, which is just recovering from recession, as it is worsening inflationary trends, with attendant consequences.
“The Senate notes that the nation’s currency is highly essential and critical in national development; and if mismanaged, the economy is doomed with adverse effect on the people and the nation.
“The Senate is worried that banks in Nigeria no longer dispense lower naira denominations, with the excuse that they hardly receive them from the Central Bank of Nigeria.
“The Senate is worried also that reports in the media over the issue are not cheery at all.”