Forex Traders Sell Dollar at New Exchange Rate as Naira Depreciates
- The Nigerian currency has depreciated further against the US dollar in the official foreign exchange market
- While against the British pound and euro, the naira improved despite more people looking to buy foreign currency
- The Central Bank of Nigeria windows for Bureau de Change operators to in the NAFEM window is set to end on January 30
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian currency struggles continue against the US dollar in the official and unofficial foreign exchange markets.
Data from FMDQ securities showed that the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM) closed against the dollar at N1,476.95/$1 on Monday, January 13.
Source: Getty Images
Monday's closing rate shows a slight depreciation of 0.38% or N5.86 compared to N1,543.03/$1. which was exchanged on Friday last week.
Naira against the pound, euro
However, Nigeria's currency appreciated against the Pound Sterling in the official market on Monday by N11.87, trading at N1,877.43/£1 compared with last Friday’s N1,889.29/£1.
It was also good news for the naira against the Euro, and it improved its value by N4.94 to close at N1,578.87/€1, in contrast to the previous trading day’s N1,583.81/€1.
Naira in the black market
Many businesses and individuals turn to the black market for quick dollars and to avoid stringent CBN policies that limit access.
A look at the parallel market indicated that the Nigerian Naira slumped against the greenback yesterday by N5 to sell at N1,655/$1 compared with the preceding session’s N1,650/$1.
The local currency weakened further as the deadline for removing Bureaux De Change (BDC) operators from the Electronic Foreign Exchange Matching System (EFEMS), designed to enhance transparency in the FX system, approaches.
In a circular released, CBN said:
"In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only). This window will be open between December 19, 2024 to January 30, 2025."
Here is a snapshot of naira to dollar exchange rate
- CFA: N2.42
- Yuan/renminbi: N210.97
- Danish krona: N211.58
- Euro: N1,578.87
- Yen: N9.84
- Riyal: N411.99
- South African rand: N80.91
- Swiss franc: N1,686.49
- Pounds sterling: N1,877.42
CBN denies selling dollar
Ealier, Legit.ng reported that the Central Bank of Nigeria (CBN) has denied that it sold foreign exchange (FX) to Bureau de Change (BDC) operators at the rate of N1,001/$1.
In a post on X on Thursday, the CBN stated that a circular purporting the announcement by the apex bank of the sale of $10,000 to BDCs at the rate of N1,001/$1 was fraudulent.
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Source: Legit.ng
