4 months ago
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- The Nigerian currency, the naira, depreciated in the official and parallel markets after the Eid-el Adha holidays
- The US dollar sold for N1,483.02 per dollar in the official market and N1,505 in the parallel market
- The official FX market witnessed a supply of $150.73 million compared to the $183.47 million recorded on Friday, June 14, 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The Nigerian currency depreciated in the official market after the holidays as the scramble for the dollar increased.
Analysts point to the resumption of business activities as the reason for the increased dollar demand, stating that most businesses and importers already placed requisitions for the US greenback before the holidays.
The naira depreciates in the official and parallel markets after the Eid holidays
Credit: Bloomberg/ContributorSource: Getty Images
Traders place high demand on the dollar after holidays
The naira traded slightly low in the official foreign exchange market at N1,483 to the dollar on Wednesday, June 19, 2024, compared to the N1,473 it traded on Friday, June 14, 2024.
Currency traders quoted the dollar at an intra-day high of N1,514..82 to the and a low of N1,390.
Data from the FMDQ Exchange shows that the Nigerian foreign exchange market witnessed an improved forex supply, which rose to $150.73 million. Analysts say this prevented the naira from depreciating more than it did.
The naira depreciates in the parallel market
Meanwhile, the naira traded flat in the parallel market, also known as the black market, with a marginal loss of 0.02%., a BusinessDay report said.
Bureau de Change operators increased the selling exchange rate for the US dollar in the black market, also known as the parallel market.
According to traders who spoke to Legit.ng on Wednesday, June 19, 2024, a dollar now sells for N1,505 in the black market.
This is higher than the N1,490.1 quoted on Tuesday, June 18, as the country observes public holidays for the Eid-ul-Adha celebration, Legit.ng reported
Financial tech companies such as Chipper Cash are quoting N1,654.8 as an exchange rate to sell dollars to customers.
Financial experts say the naira's depreciation at both ends of the FX markets is due to the halt in forex sales to BDC traders by the Central Bank of Nigeria (CBN).
Another currency emerges as the best-performing in Africa
Legit.ng previously reported the Kenyan shilling currency has risen to a 15-month high against the US dollar.
The last time the shilling performed this strong was in March last year, rising from Shs161 per dollar to Shs 128.66 to remain one of the best-performing currencies in Africa.
Reports show that the performance is due to improved agricultural export inflows as dollar demand thaws among importers.
Source: Legit.ng
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