Traders Sell Dollar at New Exchange Rate As Naira Falls Again
- The value of Nigerian currency has depreciated against the dollar in all foreign exchange market
- The new exchange rate data released by the CBN shows that recorded a slight depreciation in the NAFEM window
- In a chat with Legit.ng, Aminu Gwadabe, ABCON President, outlined the actions the CBN should take to sustain the naira's appreciation
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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, the naira, depreciated slightly against the United States dollar in the official market.
Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of N1,502 per dollar at the end of trading on Tuesday, March 4.
Source: Getty Images
Tuesday's exchange rate is a 0.20% or N3 depreciation for the naira when compared to the previous day's closing rate of N1,499 recorded in the official market.
The naira, however, appreciated against the pound sterling in the official market, closing at N1,898.15/£1 on Tuesday, which is a N3.46 rise from N1,901.61/£1 versus Monday.
While against the euro, it lost 25 Kobo to sell for N1,571.18/€1, in contrast to the preceding session’s N1,570.93/€1.
Naira improves against dollar at black market
In the parallel market, also known as the black market, it was the same story for the naira against the US dollar.
Traders who spoke to Legit.ng confirmed that the dollar appreciated against the Nigerian currency.
"We sold the dollar at N1,515/$1 on Tuesday compared with the N1,510/$1 it was exchanged on Monday."
Snapshot of naira rates in official market
Based on CBN published rates, here is a breakdown of naira's performance against other foreign currencies in the NAFEM market.
- CFA: N2.39
- Yuan/Renminbi: N205.52
- Danish Krona: N210.62
- Euro: N1,571.18
- Yen: N10.04
- Riyal: N397.61
- South African Rand: N80.31
- Swiss Franc: N1,674.53
- Pounds Sterling: N1,898.15
ABCON lists reasons for naira's appreciation
Meanwhile, in a chat with Legit.ng, Aminu Gwadabe, the President of the Association of Bureau de Change Operators of Nigeria (ABCON), has called on the CBN to enforce maximum margins on sales by banks to Bureau De Change to prevent market distortions.
His words:
"Without a continuing regulatory oversight on transparency of participants as regards the maximum margin on sales by the banks to the BDCs,
"Also it is for the CBN to issue a prudential percentage on volumes of sales on Diaspora’s remittance, portfolio investment proceeds by banks to BDCs to continue to usher in supply and thereby discouraging the illegal economic behaviour of currency substitution, speculation and discretionary demands that are frivolous in nature."
Customs exchange rate changes
Legit.ng previously reported that the Central Bank of Nigeria has revised the Customs exchange rate for clearing goods at the country's ports and airports.
The latest data indicates a slight increase from the previous rate, aligning with the naira's performance in the official foreign exchange market.
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Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Aminu Gwadabe (President at Association of Bureaux de Change Operators of Nigeria) Alhaji Aminu Gwadabe is the president of the Association of Bureau De Change Operators of Nigeria (ABCON) that represents the interests of licensed Bureau de Change operators in Nigeria. Gwadabe comments on issues relating to the foreign exchange market, currency exchange rates, and economic policies in Nigeria over the years.
