Naira Depreciates Against US Dollar in Official Market, BDC Traders Give New Exchange Rate

• The value of the Nigerian currency once again depreciated against the US dollar in the official market
• New data shows that the naira fell by N1.24 to the US dollar, while BDC traders also adjusted their rates
• Nigerians will be hoping that Nigerian currency perform better in the new month of June across all foreign exchange markets

Nigerian currency, the naira, ended the month of May 2024 against the US dollar the same way it started.

New data from FMDQ securities showed that the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is the official market, closed at N1,485.99/$1 on Friday, May 31.

The rate on Friday indicates a 0.08% or N1.24 loss when compared to Thursday’s closing price of N1,484.75/$1.

This happened after the value of foreign exchange (FX) transactions at the official market decreased by 9.3% or $21.90 million to $213.52 million from the $235.41 million in the previous day.

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The closing rate of Friday means that the Nigerian currency reversed most of the improvement it recorded in April, March and February.

Naira to dollar against pound, euro

Nigerian currency also witnessed a sharp decline against the British pound sterling and also the euro.

According to CBN data, naira fell by N353 against the pound sterling in the official market on Friday, trading at N1,877.92/£1 versus the N1,524.52/£1 it finished a day earlier.

While against the euro, it weakened by N301.53 to sell for N1,598.96/€1 versus N1,297.43/€1 quoted in the preceding session.

Naira to dollar at black market

In the parallel market, Bureau de Change also crashed naira following the trend in the official market.

Abudulahi, a BDC trader, told Legit.ng that a dollar is now sold at N1,490/$1 on Sunday, June 2, 2024, compared to the previous rate of N1,480/$1 on Friday.

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Naira crashes by N155/$ as dollar supply falls by 30% in official markets

During the week, the naira recorded some improvement, but all this changed on Friday and Saturday as more Nigerians in need of dollars quickly came to us. This was the reason the rates were adjusted. It is a demand and supply market."

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