New Exchange Rate As Naira Value Rises Against US Dollar in Black Market, Falls in Official Market

• The value of the Nigerian currency depreciated against the dollar in the official foreign exchange market
• There was, however an improvement for the naira in the parallel market, also known as the black market
• The Central Bank of Nigeria is working hard to boost dollar supply and stabilised exchange rates

The Nigerian naira recorded a mixed performance against the US dollar in the foreign exchange market.

Data from FMDQ securities showed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official market, the naira closed against the dollar at N1329.65/$ on Wednesday, May 29, 2024.

Wednesday's rate is a 155.77 depreciation for the naira against the US dollar when compared to exchange rate of N1,173.88 per dollar achieved on Tuesday, May 28.

FMDQ data shows that $336.54 million worth of forex transactions were exchanged between participants, which include banks and companies on Wednesday.

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CBN sells dollars cheaply again to banks as naira gains in official, black markets

Naira to euro, pounds

It was a different story for the naira against the british pound, and the euro in the official market.

CBN data showed that in the official market, the Nigerian currency improved its value against the pound sterling by N119.85 to sell for N1,764.43/£1 compared with Tuesday's rate of N1,884.28/£1.

It was a similar story for the naira against the euro, as it appreciated by N106.73 to settle at N1500.57/€1, compared to the previous rate of N1,607.31/€1.

Naira to dollar black market

On Wednesday, the naira received more good news in the black market, as BDC traders traded at N1,480, compared to the previous rate of N1,510.

Legit.ng spoke to Abudulahi, a BDC trader, who explained that the market demand for the dollar has decreased.

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“Naira is gaining”: CBN predicts new exchange rate as dollar crashes again, FX Reserves rise

"The dollar demand has reduced in the last few days, which is why the naira is appreciating. However, I don't see it returning to N1,200/$ for now."

CBN issues new directives on street trading

Legit.ng previously reported that the CBN banned street trading of foreign currencies by Bureau de Change (BDC) operators, citing the need to regulate the foreign exchange market properly.

CBN's director of risk management, Blaise Ijebor, said street trading of foreign currencies is not allowed as the apex bank does not want BDCs under trees.

He said the traders should be in offices where customers can come in and change their currencies.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng