Trades, Banks Sell Dollar at New Exchange Rate As Naira Crashes Again in All FX Markets
- The Nigerian currency has once again depreciated against the dollar in both the official and unofficial markets
- Following the suspension of the organized labour strike, more businesses approached the forex markets to buy and sell foreign currencies
- The willing buyer-seller market dynamics led banks and currency traders to adjust their rates
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The naira continued its poor performance against the US dollar in the official and unofficial foreign exchange markets.
The latest data from FMDQ securities shows that the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira exchange rate to the dollar, closed at N1,488.60/$1 on Wednesday, June 6, 2024.
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Wednesday's rate represents a 0.8% or N11.65 loss for the naira against the US dollar compared to Tuesday's closing price of N1,476.95/$1.
The naira's fall was due to increased demand for foreign currencies following the suspension of industrial actions embarked on by organized labour, which crippled economic activities on Monday and partially on Tuesday.
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Data showed that the value of forex transactions executed at the official market on Wednesday stood at $205.43 million.
However, CBN data shows that the naira maintained stability against the pound sterling and the euro, exchanging on Wednesday at N1,879.89/£1 and N1,604.70/€1, the same rate from Tuesday.
Naira to dollar at unofficial market
The naira followed its familiar depreciation pattern in the parallel market, also known as the black market.
According to traders who spoke to Legit.ng, the naira depreciated against the US dollar to N1,500.
Abdullahi a BDC trader said:
"We are selling the dollar at N1,500 or N1,510 depending on how much the buyer wants to sell, while we buy at N1,480."
Expert predicts naira new exchange rate against dollar
Legit.ng earlier reported that renowned economist Bismarck Rewane has disclosed his expectations for the performance of the naira in the remainder of 2024
The chief executive officer of Financial Derivatives Company (FDC) expects the naira to remain at its current level.
He also discussed inflationary trends and predicted the state of the Nigerian economy in the next few years under President Tinubu's administration.
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Source: Legit.ng
