Summer holiday: Naira under pressure over FX demand spike

The Nigerian Naira is under intense pressure due to the recent spike in demand for Foreign Currencies following the kickoff of the seasonal summer holiday.

DAILY POST reports that most nursery, primary and secondary schools in Abuja, Lagos, and across the country recently ended their third term calendar heralding the summer holiday to span through September 2024.

The development according to the Central Bank of Nigeria in a circular signed by its Director of Policy Formulation, Omolara Duke on Friday, had led to the increased demand for FX.

“The Central Bank of Nigeria (CBN) wishes to inform the general public that recent movements in the foreign exchange market are driven largely by demand pressure from corporate entities and the expected seasonal uptick during the summer period,” he said.

Consequently, the country’s apex bank revealed that it sold $106.5 million in Foreign currency in 48 hours to authorized dealers.

The bank noted that the FX transactions were conducted between Thursday and Friday.

CBN had earlier said it sold $20, 000 each to legible Bureau De Change operator at the exchange rate of N1,450 per dollar on Thursday.

The development caused the Naira to experience mixed sentiments at both official and black foreign exchange markets on Friday.

DAILY POST reports that while the Naira appreciated to N1550 per dollar at the black market, it depreciated to N1596.92 per dollar at the official market.

This indicates the level of pressure the country’s currency is experiencing.