Naira Reverses Gain after 4-Day Winning Streak, Crashes in Official, Parallel Markets

• The Nigerian currency, the naira, has reversed its four-day winning streak to trade low against the dollar
• The naira depreciated by 1.55% in the official market to trade at N1,485.66 per dollar compared to the previous day’s rate
• Foreign exchange turnover in the FX market recorded a spike at $167.5 million, a 35.73% increase

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

The naira has reversed its gains after a four-day winning streak, declining by 1.55% to close at N1,485.66 in the official market on Thursday, May 23, 2024.

The decline comes after the naira maintained a steady rise in the official market before snapping on Thursday, May 23, 2024.

The naira reverses gain after a week-long gain

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Nigeria’s foreign exchange market records high dollar supply as naira recovers

The Nigerian currency fell to its lowest since March 20, 2024, when it exchanged at N1.492.61 per dollar.

In the past week, the naira has steadily climbed, gaining against the US dollar, beginning with N1,497.33 per dollar on Friday, May 17, 2024, a 2,45% gain.

According to data from FMDQ Exchange, the foreign exchange market recorded a forex turnover of $167.55 million on Thursday, May 23, 2024, a 35.72% rise from the previous day’s record.

CBN gives fresh mandate to BDCs

The naira’s decline comes amid a new directive from the Central Bank of Nigeria (CBN) to Bureau de Change (BDC) operators to reapply for new operational licenses.

The apex bank disclosed that the new directive aligns with its new guidelines released earlier in the year.

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CBN Slashes Customs FX rate for duty collections as black market traders crash dollar

FX supplies rise

The increased FX turnover shows increased trading volume caused by speculative activities and adjustments to market positions.

The FX market has witnessed an increase in dollar supply in the last few days despite CBN halting forex sales to BDCs, which analysts believe propped the naira’s value in April when the apex bank pumped more FX into the markets.

Meanwhile, the naira lost N10 in the parallel market on Thursday, May 23, 2024.

Reports say the naira traded at N1,510 per dollar in the black market, representing a 0.66% decline compared to the N1,500 per dollar quoted on Wednesday, May 22, 2024.

Naira loses over N1,400 to pounds, euro

Legit.ng reported that a monthly analysis shows that the Nigerian currency, the naira, has lost ground against the pound sterling in the last month.

Available data revealed that as of April 2024, the Nigerian currency had recovered massively against the pound sterling, trading at an average of N1,200 per pound.

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Traders sell dollars at new rates as naira recovers for second day amid rise in FX reserves

The development improved compared to the March records when the naira traded at an average rate of N1,762 to the pound.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng