Naira No Longer N800/$, Appreciates at Official Market as BDCs Operators Adopt Different Exchange Rates

• The Nigerian currency has experienced some respite against the US dollar at the foreign exchange markets
• The latest trading data showed Naira exchange rate recorded a slight appreciation against the US dollar after hitting a low
• The persisting forex supply gap is seriously threatening the plan by the CBN to unify the different exchange rates in the country

Naira recorded a slight recovery against the US dollar on Monday, July 17, 2023, after falling to its lowest on Friday last week.

Data obtained from FMDQ securities showed that Naira's closing exchange rate against the US dollar was N795.28 on Monday.

This is an improvement of 1.07% or N8.62 compared to the previous rate of N803.90 to a dollar it exchanged on July 14.

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Naira records massive gain at official market as CBN withdraws operating license of over 2,000 forex dealers

Forex market performance

FMDQ data also showed that some participants exchanged a dollar for as high as N832 during intra-day trading.

While the total forex transaction recorded on Monday was just $34.55 million, a 26.33% decline when compared to $46.9 million on Friday.

Black Market traders rates

However, in the parallel market, the Naira continues to exchange above N800 to a dollar.

Daily Trust reports that the dollar was exchanged between N825 and N830 in Lagos, while in Abuja, it was sold between N810 and N812, and in Kano, it was exchanged for N820.

At the peer-to-peer forex window, where the exchange rate is trading using cryptocurrency stable coins, rates sold for around N831/$1 on Monday.

BDCs president speaks on Naira depreciation

The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, has called on the Central Bank of Nigeria to include BDCs in the Investors and Exporters window to stop the free fall of the naira.

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Naira makes biggest recovery in 4 years at the official market, sells for N742 per dollar

According to him, while the I&E window is laudable, it’s patriotic and nationalistic, there is no policy that can actualise its mission without carrying the interest of the subsector (which is the BDCs).

He words:

"The I&E window is supposed to run on three legs, the banks, the CBN and the BDCs, overtly or covertly, the BDCs are missing.’’

CBN speaks on relationship between e-naira and bank

Meanwhile, Legit.ng earlier reported that the CBN said the e-naira was not introduced to compete with Deposit Money Banks.

Angaye, at the University of Abuja, said e-naira’s benefit does not include replacing the existing payment system infrastructure.

He highlighted some of the importance to include; deepening the financial and payment systems, addressing challenges in the payment system infrastructure and complementing what is already on the ground.

Source: Legit.ng