Forex Traders Sell Dollar At New Exchange Rate As Naira Depreciates in Official Market

• The Nigerian currency depreciated marginally against the US dollar in the official foreign exchange market
• It was the same story for the naira against the British pound, and euro as Bureau de Change operators quoted new rates
• The development followed recent disruption of activities at the ports and airports by organised labour union workers

The Nigerian currency continues to experience fluctuations in the various foreign exchange markets.

The latest data from FMDQ securities showed that naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM) closed against the dollar at N1,476.95/$1 on Tuesday, June 5.

Tuesday's closing rate shows a slight depreciation of 0.06% or 83 Kobo compared to N1,476.12/$1, which was exchanged a day earlier.

This happened as the value of FX transactions during the session significantly increased by 94.5% or $115.12 million to $236.99 million from the $121.87 million executed on Monday.

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Legit.ng reported that organised labour in the country called off a strike that paralysed the markets and economic productivity. It is expected that there will be robust activities today, Wednesday, June 5.

Naira against the pound, euro

The Central Bank of Nigeria reports that the naira also suffered a N1.97 depreciation against the pound sterling in the official market on Tuesday, selling for N1,879.89/£1 compared with Monday's closing price of N1,877.92/£1.

However, the naira appreciated against the euro by N8.74 to quote at N1,604.70/€1, in contrast to Monday's value of N1,613.44/€1.

In the parallel market, also known as the black market, the naira saw a slight depreciation, trading at N1,500 against the dollar on Tuesday compared to the previous day's rate of N1,490/$.

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CBN reduces Customs exchange rate to clear goods at ports, airports after Eid-el-Kabir holidays

Many businesses and individuals turn to the black market for quick dollars and to avoid stringent CBN policies that limit access.

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