Expensive Sallah as naira depreciates in all forex markets

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

On Friday, June 14, 2024, the naira weakened in the parallel segment of the foreign exchange market.

According to currency traders, popularly known as Bureau de Change (BDC) operators, the naira fell to N1,485 per dollar.

Naira Stumbles against dollar in official, black markets amid Eid-el-Kabir celebrations
Source: UGC

These black market traders reported a buying price of N1,460 and a selling price of N1,485 for the dollar, resulting in a profit margin of N25.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

The decline marks a N5 or 0.34% decrease from the N1,480/$ rate observed a month ago on May 10.

The depreciation of the naira against the dollar often affects the prices of food items in the markets, thereby reducing purchasing power of Nigerians.

Coincidentally, in this case, the effect will be felt by the Muslim faithfuls hoping to celebrate the Eid-el-Kabir amid the hike in food and rams.

It would be recalled that naira started the week on Monday, June 10 at a buying rate of N1,380 and the selling rate of N1,482 per dollar.

Also on Friday, the local currency depreciated by 0.44%, or N6.48, to N1,482.72 per dollar at the FMDQ Exchange, which manages official foreign exchange trading in Nigeria.

This is a decline from N1,476.24 per dollar on May 13. During trading hours, the dollar reached a high of N1,490 and a low of N1,390.

At these rates, the difference between the official window and the parallel market is N2.28.

According to TheCable, the daily foreign exchange market turnover was $183.47 million.

The naira's performance is occurring in the context of a recent directive from the CBN instructing BDC operators to reapply for new operational licenses.

According to data released by the CBN, foreign remittances totalled $365 million in May 2024, marking an 80% annual rise compared to the May 2023 figure of $203.89 million.

Source: Legit.ng