Naira Starts June Strong as Dollar Sells At New Exchange Rate, British Pound nears N2,000

• The value of the Nigerian currency appreciated against the dollar in the official foreign exchange market
• There is also an improvement for the naira in the parallel market, also known as the black market
• The Central Bank of Nigeria, in the last few days, has sold more dollars to the official market to stabilise the exchange rate

On the first trading day of June 2024, Nigerian currency started strong against the US dollar in the official and unofficial foreign exchange markets.

New data from FMDQ securities showed that naira appreciated against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) to N1,476.12 /$1 on Monday, June 3.

This represents a 0.7% or N28.34 improvement for Nigerian currency compared with the N1,485.99/$1 transacted last Friday, May 31.

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Naira depreciates against US dollar in official market, BDC traders give new exchange rate

The development comes amid the the Nigeria Labour Congress (NLC) and the Trade Union Congress' (TUC) industrial action over minimum wage and power tariffs, which slowed down the market.

The impact was evident as forex transactions declined on Monday in the official market by 42.9%, or $91.55 million, to $121.87 million from the $213.52 million recorded in the last trading session.

Naira against Pound and Euro

However, CBN data shows that naira rate was unchanged against the pound sterling in the official market on Monday at N1,877.92/£1, the same as Friday last hows.

While against the Euro by N14.48 to trade at N1,613.44/€1 on Monday versus N1,598.96/€1.

Also, in the black market, the naira appreciated against the dollar as BDC traders quoted buyers a N1,490 rate, an improvement from the N1,500 rate on Friday.

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

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