Traders Sell Dollar at New Exchange Rate As Naira Depreciates Again
- The value of the naira depreciated further against the US dollar in the foreign exchange markets again
- The latest movement affected both the official and unofficial exchange rate for the naira against the dollar
- ABCON president has raised concerns on the volatility of the Nigeran currency in the forex markets
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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 naira has lost more value against the US dollar in the official and official foreign exchange markets.
According to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) naira fell to N1,537.05/$1 on Friday, March 21.
Source: Getty Images
Friday's exchange rate represents N2.72 or 0.18% depreciation when compared with compared with the preceding day’s N1,534.33/1$.
It was a different story for the naira in the same official forex market against the British pound and also the euro.
CBN data shows that the exchange rate was unchanged on Friday as the pound sterling and the euro closed at N1,972.89/£1 and N1,657.81/€1, respectively the same rate from the previous day.
The apex bank also provided a snapshot of the naira's official exchange rates against other currencies.
- CFA - N2.54
- Yuan/Renminbi - N211.15
- Danish Krona - N222.23
- Euro - N1,657.81
- Yen - N10.28
- Riyal - N408.05
- South African Rand - N84.05
- Swiss Franc - N1,731.47
- Pound sterling - N1,972.89
Source: Getty Images
Black market dollar exchange rate
The naira however fell against the dollar in the black market also known as the parallel market.
A BDC trader Abdullahi told Legit.ng that the naira lost N5 of its value and it is getting closer to the N1,600 exchange rate mark.
He said:
"We increased the dollar selling exchange rate to N1,590 from the last trading day. This is because we have more customers on Fridays. I expect the dollar to cross N1,600 this week.
"For the British pound, there are no significant changes; it remains at N2,050 for the selling rate and N2,005 for the buying rate. Meanwhile, the euro has a selling rate of N1,703 and a buying rate of N1,655."
Meanwhile, Aminu Gwadebe, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), has raised concerns about the current volatility of the naira.
He noted that the foreign exchange (forex) market is facing some challenges.
Gwadebe said:
’The Naira, unfortunately, is suffering an inconsistent journey bedeviled by all kinds of wars ranging from Trade war, rate war and speculative attack and therefore becoming the most unpredictable currency in the world.’’
ABCON says banks not selling dollars to BDC operators
Legit.ng reported that Gwadabe, in a chat with Legit.ng, raised concerns that BDCs are grappling with the limited availability of forex.
He accused commercial banks of failing to sell foreign exchange to them.
According to the ABCON president, the situation puts the naira in a precarious position in the 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.
