Access, Zenith, UBA, Currency Dealers Sell Dollar at New Rate as Naira Nears Two-Week Low

• The naira depreciated in the parallel and official markets on Thursday, May 9, 2024
• The Nigerian currency closed at N1,459 per dollar in the official market, losing N38.67 to the dollar
• The naira lost marginally, trading at N1,455 per dollar from the previous rate of N1,450

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency, the naira, slumped against the US dollar in the official and parallel markets on Thursday, May 9, 2024.

The naira closed at N1,459 per dollar in the official market, depreciating by N38.67 compared to the previous rate of N1,421.06 on Wednesday, May 8, 2024.

The naira falls in all markets.

In the parallel end of the market, the naira traded at N1,455 per dollar, recording a marginal from the N1,450 it traded the previous.

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Data from NAFEM shows that the foreign exchange market recorded a 48.77% decline in turnover at $84.38 million on Thursday, May 9, 2024, compared to the $164.74 million recorded on Wednesday, May 8, 2024.

Traders quoted the dollar at a high of N1,465 and a low of N1,331 per dollar.

Nigeria’s FX reserves rise

The development comes as Nigeria’s foreign reserve recorded a boost in the last three weeks.

After several weeks of depletion, Nigeria’s foreign exchange reserves increased marginally by about $262 million in 19 days.

Data from the Central Bank of Nigeria (CBN) reveals an uptick in reserves, closing at $32.369 billion as of May 7, 2024, up from the $32.107 billion recorded in the previous month.

Nigeria’s reserves have experienced a steady decline from $34.45 billion in March 2024 due to falling oil prices, debt servicing, and other CBN obligations.

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Naira weakens further as banks, currency dealers quote dollar at higher rates

CBN denies defending the naira with reserves

The decline in the reserves led to the speculations that the apex bank was defending the naira with reserves.

According to reports, the Nigerian FX reserves witnessed a decline of about $2 billion in April.

The CBN denied the reports that it was not intervening in the foreign exchange markets with the proceeds from the reserves.

Reports say the FX reserves are currently at a 26-day high compared to the April 12, 2024 figure of N32.612 billion.

The naira on a three-week decline

The country’s foreign reserves declined noticeably for over a month, beginning at $34.450 billion on March 18, 2024.

The reserves are the country’s firepower against the depreciation of the naira, which has dropped in value against the US dollar.

The naira has consistently depreciated against the US dollar and other major currencies in the last two weeks after emerging as the world’s best-performing currency in April.

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Naira reverses gains, crashes against US dollar in official market again

Naira Weakens Further

Legit.ng earlier reported that the Nigerian currency, the naira, closed weaker at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, May 8, 2024.

Data from FMDQ Securities show that the naira crumbled to N1,421 per dollar in the official market, representing a 1.27% decline from the N1,403 per dollar it quoted the previous day.

Forex turnover in the FX market rose by 2.5% to $164 million on Wednesday, May 8, 2024, from the $160.77 million recorded on Tuesday, May 7, 2024.

Source: Legit.ng