Naira Hits Lowest in All Markets Since March as Access, Zenith, Other Banks Sell Dollar at New Rates
- The naira has depreciated again in the official and parallel markets to trade at N1,419 and N1,340 per dollar, respectively
- The naira has witnessed eight days of ceaseless depreciation since it last exchanged at N1,075 per dollar
- Also, analysis shows that dollar supply in the official market was much lower in April compared to March 2024
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The naira has crashed to the lowest since March in the official and parallel markets, where the exchange rates between the naira and the dollar sold for N1,419 per dollar.
The current rate is the first time since March this year that the naira has depreciated below N1,400 per dollar.
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The naira falls for eight days straight
The naira has depreciated for eight days since it last appreciated close to N1,000 per dollar at the official foreign exchange market since the Central Bank of Nigeria (CBN) introduced several policies to boost market confidence.
Reports say the Nigerian currency also fell in the parallel market, where dealers quoted N1,340 per dollar.
Data from the FMDQ shows that the naira depreciated, closing at N1,419 per dollar compared to N1,339.23 per it closed on Friday, April 26, 2024.
Traders in the official market quoted the naira at an intraday high of N1,450 and a low of N1,160 per dollar.
The forex market recorded a turnover of $147.83 million, a decline from the $309 million recorded on Friday, April 26, 2024.
April recorded an FX turnover of $3.2 billion, compared to the $5 billion turnover in March 2024. This shows that turnover was much lower in April.
The external reserve also continued its gradual rise and is now $32.13 billion, marginally higher than the $32.109 billion reported last week.
Analyst blames speculators for naira crash
Financial analyst, economist, and banker Maurice James said the naira crash is speculators fighting back as the CBN may have also relaxed its monitoring of FX activities.
James said speculators are back at work hoarding hard currencies, hoping to sell higher.
“This is a clear case of speculators and corruption fighting back. Some have hoarded the dollars after buying them at high prices. Also, there is a growing demand as more international students return to school after the Easter break.
“So, it combines several factors, but, mostly, speculators are not relenting. You also know that these elements are in power and holding political offices. So, they know how these things work.”
The naira's fall follows the unveiling of a plan by the Bureau de Change (BDC) operators to unify the parallel end of the FX market.
The Association of Bureau de Change Operators of Nigeria (ABCON) has announced plans to establish unified retail end FX market operations.
ABCON President Aminu Gwadabe recently revealed that the move would tackle market volatility and boost regulatory compliance within the BDC subsector.
Naira bounces back gains over N100 against the dollar in the black market
Legit.ng previously reported that the naira again appreciated against the US dollar in the black market, also known as the parallel foreign exchange markets.
Bureau de Change traders who spoke to Legit.ng said the naira's value on Monday, April 29, 2024, stands at N1,275 against the US dollar.
The naira again appreciated against the US dollar in the black market, also known as the parallel foreign exchange markets. Bureau de Change traders who spoke to Legit.ng said the naira's value on Monday, April 29, 2024, stands at N1,275 against the US dollar.
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Source: Legit.ng
