Forex Traders Sell Dollar at New Rates to Customers As Naira Depreciates by Over N90
- Nigerian currency has once again dropped in value against the US dollar in the foreign exchange market
- Data shows that the naira in the official market fell by over N90, while in the unofficial market, it dropped by N32
- The Central Bank of Nigeria has released a new guideline to checkmate activities of forex speculators
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira's poor performance continues on the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official forex market.
Source: Getty Images
Data from FMDQ showed that on Friday, February 23, the naira depreciated against the US dollar at NAFEM by about 6%, or N94.19, to close at N1,665.50/$1, compared to the N1,571.31/$1 rate the previous day.
Checks showed that the depreciation resulted from a shortage in the supply of foreign exchange (FX), with the value of forex transactions decreasing by 20.9% or $40.32 million, dropping to $151.92 million from the $192.25 million traded the previous day.
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The CBN data showed that against the Pound Sterling and Euro at NAFEM, the naira closed at N1,880.81/£1 and N1,609.89/€1, respectively.
Naira to the dollar unofficial market
In the Peer-to-Peer (P2P) market, the Nigerian currency saw improvement against the greenback on Friday, gaining N32 to trade at N1,705/$1.
This marked an improvement from the previous day's rate of N1,737/$1.
Additionally, the Nigerian currency appreciated against the dollar in the black market during the session, closing at N1,800/$1 compared to N1,895/$1 in the preceding trading session.
A BDC trader at Airport Road, Lagos, who gave his name as Abdulahi, said he expects a better performance for the naira in the new week.
His words:
"The Central Bank of Nigeria is meeting and is expected to roll out new policies, so I anticipate the market reacting in favour of the Naira."
Peter Obi on new Customs exchange rate
Earlier, Legit.ng reported that the Central Bank of Nigeria adjusted the Nigeria Customs Service foreign exchange rate for clearing imported goods at Nigerian ports.
Peter Obi reacted to the latest changes and expressed concerns that they could lead to the death of many businesses.
He further advised the government on actions to help the naira recover against the US dollar.
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Source: Legit.ng
