Access, UBA, Zenith, Others Quote Dollar at New Rates in Official Market as Naira Recovers

• The naira recovered marginally in the official foreign exchange market on Tuesday, August 27, 2024
• The Nigerian currency exchanged for N1,594 as against the N1,596 per dollar it traded the previous day
• The foreign exchange turnover in the official market also improved to $156.94 million compared to $102.93 million the previous day

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

The naira made a marginal recovery in the official market on Tuesday, August 27, 2024.

The official naira exchange rate, which opened the week with a loss, regained about N2 in the official market following a $7.39 billion surge in turnover in July 2024.

FX turnover improves in the official market

Data from the FMDQ Exchange shows that the naira gained about N2, trading at N1,594 per dollar, as opposed to the N1,596.06 it traded the previous day.

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Willing buyers and willing sellers quoted the spot dollar rate at a high of N1,612 per dollar and a low of N1,505.

The foreign exchange turnover improved to $156.94 million, compared to $102.93 million recorded the previous day.

Naira crashes in the parallel market

In the parallel segment of the FX market, the naira crashed to N1,620 per dollar following a surge in demand by importers and others seeking FX.

Abbas Yishau, a black market trader on the Ogba axis of Lagos, told Legit.ng that the traders are battling shortages and can barely meet the demands.

“Many people cannot go to official channels such as banks because of the many requirements of obtaining FX. They come to us to buy dollars. This caused a spike in the exchange rates.

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The development is why the dollar is very expensive in the market now. Also, it is very scarce.”

Nigeria experienced a surge in FX inflow

The development comes amid a reported surge in FX turnover in July this year.

The foreign exchange turnover in July 2024 stood at N11.48 trillion, about $7.39 billion at the official trading window for the Nigerian currency, higher than the N10.01 trillion recorded in June.

The development was disclosed in the monthly report for July published by the FMDQ Exchange Limited.

FX volatility continues as turnover rises.

In dollar terms, forex market turnover in July recorded a 10.02% monthly increase from $6.72 billion the month before.

However, reports say the naira dipped in value, with the spot rate rising by 4.88% to N72.58, closing at N1,560 per dollar in July from N1,487.74 in June.

Exchange rate volatility also rose in July as the local currency traded at about N1,500.32 to N1,621.12, compared to the N1,473.66 to N1,510.10 it traded in June 2024.

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Traders quote new rates as naira strengthens against British pound, euro

At the end of the week, the naira’s value to the dollar appreciated to N1,570.14 per dollar, closing the week at NAFEM

The forex turnover stood at $120.81 million with an intra-day high and low of N1,606 per dollar and N1,496, respectively.

Naira depreciates by 6.43% in July

Legit.ng earlier reported that the Nigerian naira lost about 6.43% of its value in July, trading at the lowest rate of N1,608.73 per dollar.

Data from the FMDQ Exchange shows that the local currency performed at a four-month low of N1,500.32 under the review period and a high of N1,612.12, exceeding the N1,600 threshold.

The naira’s depreciation came despite efforts by the Central Bank of Nigeria (CBN) to prop up its and improve liquidity in the market via FX sales.

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

Source: Legit.ng