TheNewsGuru

Tag: Dollar

  • Naira slumps to N1,669.15 per USD at official market

    Naira slumps to N1,669.15 per USD at official market

    The Naira on Wednesday depreciated at the official market, trading at N1,669.15 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N127.21.

    This represents an 8.24 per cent loss when compared to the previous trading date on Monday, Sept. 30 when it exchanged at N1,541.94 to a Dollar.

    Also, the total daily turnover reduced to 176.45 million dollars on Wednesday down from 181.86 million dollars recorded on Monday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,699 and N1,550 against the Dollar.

  • Naira depreciates by 8.24% against dollar

    Naira depreciates by 8.24% against dollar

    The Naira on Wednesday depreciated at the official market, trading at N1,669.15 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N127.21.

    This represents an 8.24 per cent loss when compared to the previous trading date on Monday, Sept. 30 when it exchanged at N1,541.94 to a dollar.

    Also, the total daily turnover reduced to 176.45 million dollars on Wednesday down from 181.86 million dollars recorded on Monday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,699 and N1,550 against the dollar.

  • Naira Nosedives to N1,700/$ at parallel market, lowest level in 7 months

    Naira Nosedives to N1,700/$ at parallel market, lowest level in 7 months

    The naira nosedived to N1,700 per dollar at the parallel section of the foreign exchange (FX) market on Friday.

    At the end of trading hours, the naira depreciated by 1.49 percent compared to the N1,675/$ traded on Thursday.

    The N1,700 per dollar is the lowest the naira has depreciated since February 19, when the naira recorded a low of N1,730/$.

    Currency traders, also known as street traders, in Lagos, quoted the buying rate of the local currency at N1,680/$ and the selling rate at N1,700/$ — leaving a profit margin of N20.

    At the official window, the local currency appreciated by 2.24 percent from N1,576.1/$ on Thursday to trade at N1,540.78 on Friday.

    According to FMDQ Exchange, a platform that oversees the official window, a dollar was sold as high as N1,691 and at a low rate of N1,530. during trading hours.

    WEEK-LONG FLUCTUATIONS

    At the parallel market on Monday, the naira depreciated to N1,665/$ from N1,663 on September 20.

    Maintaining the depreciation streak, the local currency fell further to N1,670 and N1,680 on Tuesday and Wednesday, respectively.

    However, the naira rebounded to N1,675 on Thursday.

    At the official FX market, the local currency depreciated to N1,562.66 on Monday — from N1,541.52 on September 20.

    Subsequently, the naira further depreciated to N1,658.48 on Tuesday and N1,667.72 on Wednesday, before appreciating to N1,576.1 on Thursday.

    On January 29, the Central Bank of Nigeria (CBN) said it had begun implementing a comprehensive plan to improve liquidity in the Nigerian FX markets in the short, medium, and long term.

    The apex bank said the FX reforms were designed to streamline and harmonise multiple exchange rates, promote transparency, and lessen the likelihood of arbitrage opportunities.

    On September 25, Olayemi Cardoso, governor of CBN, said the multiple interest rate hikes have restored confidence in the naira.

  • Naira gains 2.24% against Dollar at official market

    Naira gains 2.24% against Dollar at official market

    The Naira on Friday appreciated at the official market, trading at N1,540.78 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira gained N35.32.

    This represents a 2.24 per cent gain when compared to the previous trading date on Thursday, Sept. 26, when it exchanged at N1,576.10 to a Dollar.

    However, the total daily turnover reduced to 212.31 million dollars on Friday, down from 334.05 million Dollars recorded on Thursday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,691 and N1,530 against the Dollar.

  • VERY sick Naira: CBN sells $20k to BDC operators at N1,590/$

    VERY sick Naira: CBN sells $20k to BDC operators at N1,590/$

    The Central Bank of Nigeria (CBN) has announced the sale of $20,000 to each of the eligible Bureau De Change (BDC) operators in the country at the rate of N1,590/$.

    In a circular to all Bureau De Change operators dated September 25, 2024, the apex bank said the forex would provide “additional liquidity to this segment of the foreign exchange market”.

    The circular was signed by CBN’s Acting Director of Trade and Exchange Department, W.J. Kanya.

    Kanya said, “To this end, the CBN has approved the sale of $20,000 to each eligible BDC at the rate of N1,590/$. This is to meet the demand for invisible transactions.

    “All BDCs are allowed to sell to eligible end-users at a margin of not more than one percent above the purchase rate from CBN.

    Eligible BDCs interested in this transaction are directed to make the naira payment to the CBN deposit account numbers with them.

    “Also, payment confirmation and all necessary documentation for disbursement are to be submitted at the appropriate CBN branches in Abuja, Akwa, Kano and Lagos for collection of the $20,000.”

  • Naira depreciates against Dollar as CBN begins regular FX sales

    Naira depreciates against Dollar as CBN begins regular FX sales

    The Naira on Friday depreciated at the official market, trading at N1,596.92 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N30.10.

    This represents a 1.92 per cent loss when compared to the previous trading date on Thursday when it exchanged at N1,566.82 to a Dollar.

    Also, the total daily turnover reduced to 250.67 million dollars on Friday, down from 273.14 million dollars recorded on Thursday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,619 and N1,495 against the dollar.

    CBN commences regular foreign exchange sales to bridge demand gap

    Meanwhile, the Central Bank of Nigeria (CBN) says it has commenced regular sale of foreign exchange (FX) through authorised dealer banks and licensed Bureaux De Change (BDCs) to bridge gap.

    The Director, Financial Markets Department, CBN, Ms Omolara Duke, said this in a statement on Friday in Abuja.

    Duke said that recent movements in FX market were largely driven by demand pressure from corporate entities and summer season uptick.

    She said that such fx supply was in line with the price stability mandate of the CBN, as well as its commitment to ensure a well functioning and liquid market.

    She said that the apex bank would continue to support various segments of the official markets with liquidity over the next few weeks.

    “In line with the above, the CBN, on Thursday and Friday, sold a total sum of 106.5 million dollars to 29 authorised dealer banks between an exchange rate range of N1, 498 to one dollar.

    “In addition, it bought 9.5 million dollars from four authorised dealer banks at rates between N1,510 to one dollar and N1,550 to one dollar,” she said.

    She said that CBN would continue to closely monitor compliance with existing trading rules and regulations by authorised dealer banks to promote ethical conduct and support the drive to achieve fx market stability.

    She urged the general public to direct their fx demand to their banks and BDC operators in accordance with prevailing market regulations.

  • Naira appreciates against Dollar after CBN’s directive

    Naira appreciates against Dollar after CBN’s directive

    The Naira on Thursday appreciated at the official market, trading at N1,566.82 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira gained N14.83.

    This represents a 0.937 per cent gain when compared to the previous trading date on Wednesday when it exchanged at N1,581.65 to a Dollar.

    However, the total daily turnover increased to 273.14 million dollars on Thursday, up from 108.16 million Dollars recorded on Wednesday.

    Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,650.00 and N1,500.00 against the dollar.

    The Central Bank of Nigeria (CBN) had directed Bureau De Change (BDCs) operators to sell forex at a maximum profit margin of 1.5 per cent, aiming to correct market distortions.

    The apex bank directive was to normalise the foreign exchange market through ongoing reforms.

    The bank said that persistent distortions in the retail market were contributing to disparities in exchange rates, particularly in the parallel market.

    Under the directive, each BDC is authorised to purchase 20,000 Dollars at a rate of N1,450 per dollar reflecting the lower band of the trading rate observed in the previous session at Nigeria Autonomous Foreign Exchange Market (NAFEM).

    All BDCs are permitted to sell to eligible end-users at a profit margin not exceeding 1.5 per cent above the CBN rate.

  • Naira depreciates by 0.86% against dollar at official market

    Naira depreciates by 0.86% against dollar at official market

    The Naira on Monday depreciated at the official market, trading at N1,577.29 to the dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N13.49.

    This represents 0.86 per cent loss when compared to the previous trading date on Friday, July 12 when it exchanged at N1,563.80 to a dollar.

    However, the total daily turnover increased to 153.53 million dollars on Monday, up from 126.50 million dollars recorded on Friday.

    Meanwhile, at the Investor’s and Exporter’s (I&;E) window, the Naira traded between N1,590 and N1,470 against the dollar.

  • Naira loses N13.49 against Dollar at official market

    Naira loses N13.49 against Dollar at official market

    The Naira on Monday depreciated at the official market, trading at N1,577.29 to the Dollar.

    Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the Naira lost N13.49.

    This represents 0.86 per cent loss when compared to the previous trading date on Friday, July 12 when it exchanged at N1,563.80 to a Dollar.

    However, the total daily turnover increased to 153.53 million dollars on Monday, up from 126.50 million Dollars recorded on Friday.

    Meanwhile, at the Investor’s and Exporter’s (I&;E) window, the Naira traded between N1,590 and N1,470 against the Dollar.

  • Naira suffers 40% depreciation in first half of 2024

    Naira suffers 40% depreciation in first half of 2024

    The Naira depreciated by over 40 percent in the first half of 2024 in the foreign exchange market.

    FMDQ data showed that the Naira weakened to ₦1505.30 per dollar on Friday, down from between ₦896.6 and ₦907.11 where it closed on December 29, 2023.

    The figures indicate that the Naira has faced continued instability against other currencies in recent months, following a period of appreciation that ended in mid-April 2024.

    The Naira peaked at ₦1,665.50 in February 2024 and reached its lowest point in April at ₦1,140 and ₦1,230.61 in the official and parallel foreign exchange markets, respectively.

    The depreciation is a result of several policies implemented by the Central Bank of Nigeria (CBN).

    These policies include unifying the FX market, regulating International Money Transfer Operators, intervening with Bureau De Change operators, imposing regulations on excess FX to banks, and recently withdrawing the Price Verification System Portal for importers.

    Despite these policy reforms, the Naira has continued to fluctuate against the Dollar and other currencies in the foreign exchange market.

    According to Bloomberg, the Naira went from being the best-performing currency in April 2024 to the worst-performing in May.

    As of Friday, the Naira closed at ₦1505.30 and ₦1515 in the official and parallel foreign exchange markets, respectively.

    This depreciation occurred despite an increase in Nigeria’s external reserves, which stood at $34.07 billion as of June 26, 2024.