TheNewsGuru

Tag: Parallel Market

  • Naira slightly depreciates in parallel market

    Naira slightly depreciates in parallel market

    The Naira experienced a slight depreciation Wednesday, slipping to N1,740 per dollar in the parallel market compared to its previous rate of N1,735 per dollar on Tuesday.

    According to data from FMDQ, the indicative exchange rate for the Nigerian Autonomous Foreign Exchange Market (NAFEM) strengthened, rising to N1,645.4 per dollar from Tuesday’s rate of N1,689.88 per dollar. This marks an appreciation of N44.48 for the Naira.

    The market also saw a significant increase in dollar trading activity, with turnover climbing by 122.5 percent to reach $236.84 million, up from $106.44 million the previous day.

    As a result, the gap between the parallel market and the NAFEM exchange rate widened, now standing at N94.6 per dollar, up from N45.12 per dollar recorded on Tuesday.

  • Naira falls to 1,233/$ at parallel market

    Naira falls to 1,233/$ at parallel market

    The Nigerian currency, the Naira  again fell to 1,233/$ on Monday at the parallel market, according to Bureau de Change operators in Lagos.

    Some BDC operators made this known while speaking to newsmen on Monday, they  said, the local currency which was bought and sold at 1,228/$ and 1,233/$ had traded at the same rate on Friday.

    According to figures obtained from Abokifx,  the Pound Sterling was bought and sold at 1,550/ £ and 1,565/ £, while Euro was 1,290/€ and 1,305/€ respectively.

    A BDC operator in Lagos, simply known as Ibrahim, said, “The naira traded at 1,220/$ a week earlier, but weakened to 1,233/$ by the end of the week.”

    Another BDC operator who gave his name as Akeem Yusuf, said, “The naira was sold for 1,233/$ on Friday; Today Monday, it did not change because people are not buying.” The naira weakened slightly at the parallel market by 1.1 per cent or N13.

    However, on the Investor & Exporter forex window, the naira appreciated slightly on Friday, according to figures obtained from the FMDQ.

    The local currency which closed at   889.63/$ on Thursday, appreciated slightly by 0.42 per cent or N3.75 to close at 885.88/$ on Friday.

    However, on the Investor & Exporter forex window, the naira appreciated slightly on Friday, according to figures obtained from the FMDQ.

    Trading commenced at the official market at N915/$ and reached a high of N1,248/$ before closing at N885.88. The market recorded a total turnover of $92.16m on Friday.

  • Naira falls again to N1,150/$1 at parallel market

    Naira falls again to N1,150/$1 at parallel market

    The Naira on Wednesday depreciated against the US dollar at the foreign exchange market for the second time running.

    Official data from FMDQ showed that the country’s currency depreciated to N840.53 against the dollar at the close of work on Wednesday compared to N830.97 the previous day.

    The depreciation represent N9.56 compared to the exchange rate at the close of work on Tuesday.

    This is the second time the country’s currency has depreciated on the official FX market since last week.

    Similarly, at the Parallel Market, Naira exchanged at N1,150/$1 on Wednesday from N1,130/$1 on Tuesday.

    Meanwhile, the country’s forex turnover increased by 61.86 per cent to $198.21 million.

    The development comes as the governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, failed to hold a Monetary Policy Committee meeting for the second time in two months.

    Recall that the naira has continued to fluctuate in the FX market since CBN introduced reforms in June this year.

     

  • Naira appreciates slightly against dollar

    Naira appreciates slightly against dollar

    The naira within a span of hours appreciated by N166 to the dollar at the parallel market on Friday as currency traders review their mode of operations.

    The naira peaked at N1279/$ on Thursday evening but settled at N1113/$ before close of work on Friday night.

    There are strong indications that suggest the gains may be due to lack of buyers as very few people are inclined to pay around N1300/$ sensing a potential strengthening of the local currency.

    Finance Minister Wale Edun also stated that the country was set to receive $10 billion in foreign currency inflows over the next several weeks to help improve liquidity in the foreign exchange market, which has stifled growth in Africa’s largest economy.

    The minister of finance added that President Tinubu signed two executive orders permitting the issuance of domestic financial instruments denominated in foreign currencies as well as the transfer of all cash outside the banking system into banks.

    The impression among traders especially speculators is that the exchange rate could gain against the dollar in the coming days and as such no avoid losing their shirts, they have to sell lower.

    His remarks were made just after President Tinubu had assured summit attendees that he would clear the backlog and that he had taken action to address liquidity in the foreign exchange market.

    He says that every transaction in the foreign exchange market, from the official to the money changers, where large amounts of arbitrage have regularly happened, will be closely watched, and those who transgress will be found out and dealt with.

    He acknowledged that illiquidity is the reason Nigeria’s foreign exchange market isn’t operating efficiently, but the government is willing to take all necessary steps to alter the current situation.

    The foreign exchange market will be streamlined and restructured so that all rightful and proper transactions will be covered by the government and take place in the official foreign exchange market. Anything beyond that will be punished, considered a criminal offense, and illegal, according to Edun.

    The most recent instance of Naira appreciation occurred on October 3, 2023, when it increased by 0.79% (N8) against the US Dollar.

    On Tuesday, the Naira experienced a significant 6.86% depreciation after having strengthened by 1.85% against the dollar on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

     

     

  • Naira crashes to record low at parallel market as dollar supply dries up

    Naira crashes to record low at parallel market as dollar supply dries up

    The Nigerian naira plunged to a record low on the parallel market as dollar shortages continued to put pressure on the currency.

    At the parallel market, naira commenced trading at 1,175/$ and closed at 1,190/$ on Friday.

    The naira had traded at 1,100/$ at the parallel market two weeks earlier

    It, however, appreciated slightly on the Investor & Exporter forex window after it sold at 808.28/$ at the close of trading on Friday, from 810.05/$ on Thursday, according to figures obtained from the FMDQ.

    The naira has been in free-fall on the unofficial market, where it trades freely, which worsened after currency restrictions were lifted on the official market in June.

    On Tuesday, it slumped to 1,100 to the dollar on the parallel market, and 980 per dollar on the official market, Refinitiv data showed.

    Speaking to Journalist on the free fall of the Nigerian currency, a BDC operator, Adamu Afeez, said, “We are looking for those to sell to us, but now, we don’t have the dollar to buy. If we don’t have one, we cannot sell.

    Before floating the naira, it traded at the official market on the FMDQ at 471.67/$ and at the parallel market at 765/$ in June.

    The President,  Association of Bureaux De Change Operators of Nigeria, Dr Aminu Gwadabe, said achieving stable, strong and virile exchange rate in Nigeria would require full participation of BDCs in the retail segment of the forex exchange market.

    He said the challenges confronting the nation’s forex market and depreciation of the naira required cooperation from all.

    The BDCs, he said, were licensed to play at the retail end of the forex market and should be fully involved in providing lasting solutions to the ongoing volatility in the exchange rate.

    Gwadabe said, “The continuous depreciation of the naira in official and parallel markets does not benefit the BDCs and the domestic economy. Hence, steps should be taken to reverse the trend and strengthen the local currency for maximum economic impact.”

    He said several measures by the apex bank to bridge the exchange rate gaps showed genuine intentions of the regulator to entrench exchange rate stability, but getting the BDCs involved in the solution recipe would bring the desired results of a highly liquid market and stable rates.

    Gwadabe said that, like every other market segment, the market’s illiquidity remained a significant concern to the BDC sector.

    He said aside from illiquidity in the market, ABCON was unhappy with the unlicensed forex dealers who were at the centre of speculative activities and attracting a negative image to the sub-sector.

    Recall that the central bank has promised to intervene in the foreign exchange market occasionally to boost liquidity.

  • Naira slumps again, depreciates to N890/$ at parallel market

    Naira slumps again, depreciates to N890/$ at parallel market

    Few days after recording some gains, naira appears to have resumed free fall,  jumping to N900/$ at the parallel market.

    TheNewsGuru.com reports that the local currency recorded some gains after President Bola Tinubu met with the Central Bank of Nigeria (CBN) leadership last two weeks to discuss how to save the currency from debauchery.

    The currency appreciated to N820/$ early last week.

    However, fresh findings show that the currency traded at N890 to a dollar in Abuja yesterday.

    In Lagos, the situation is about the same even as speculative trading seems to be rearing its ugly head once again. At the Exporters’ and Investors’ (I&E) window, naira traded at N773.42/$1, 0.4 per cent lower than N770.72/$1 it closed on Monday.

    On Wednesday, August 23rd, 2023, individuals in the black market purchased one US dollar for N885 and sold it for N900. This shows that the value of the Naira declined even further when compared to Tuesday, August 22nd, 2023 when the local currency was exchanged at N855 to a dollar and it was purchased at N860.

  • Dollar Jumps to 600naira at Parallel market, external reserves falling

    Dollar Jumps to 600naira at Parallel market, external reserves falling

    The naira exchanged at 600 to a dollar on Monday at the parallel market, increasing fears of further degradation of the country’s currency.

    A sharp increase of 184.25 naira was visibly noticed at the importers and Exporters window, causing a widening exchange rate.

    At Zone 4 in Abuja, which is the hub of the parallel market in the Federal Capital Territory, two Bureau de Change Operators, Mohammed Isa, and Abu Abdullahi, confirmed that the rate was N599/$ at 10am and 11.14am respectively.

    However, the rates for both BDCs changed to N600/$ when they were separately contacted at N3.13pm and N5pm respectively on Monday.

    “If I reduce this by N1, I will not be able to make any profit,” one of the two BDCs, Abu Abdullahi, said.

    At the Lagos airport on Monday, a Bureau de change operator, Adamu Haruna, said that the rate was “N600/$, no more, no less.”

    When contacted Bala Usman, a BDC operator at Amuwo-Odofin in Lagos, gave an initial rate of N598/$ in the morning but changed to N599 at 2.53pm when reached again.

    “The demand is increasing and the dollar is very scarce now,” he said.

    Naira has weakened in the parallel market due to increased speculations, falling external reserves, and low foreign exchange inflows into Africa’s biggest oil producer.

    The country’s external reserves fell by $313m in March, according to figures obtained from the Central Bank of Nigeria.

    Politics is also a key factor, as experts see politicians mopping up dollars for election primaries this month.

    The President, Association of Bureaux de Change Operators of Nigeria, Alhaji Aminu Gwadabe, mentioned that the situation was caused by several factors, including elections, loss of confidence, and demand/ supply.

    “It is a market where demand and supply determine the price. Do not forget that election years are associated with foreign exchange volatility, coupled with supply squeeze. External reserves, inflation, cost of inputs, and the Russia-Ukraine war are also key issues,” he said, arguing that there was indeed a loss of confidence, saying that “once people see the exchange rate rising, the confidence will also fall.”

     

  • Naira value falls to N473 against Dollar at parallel market

    Naira value falls to N473 against Dollar at parallel market

    The naira suffered further setback at the parallel market and Investors and Exporters forex window on Tuesday.

    According to figures obtained from Bureau De Change operators, the naira exchanged to the dollar for 473/$ at the parallel market.

    It had earlier gained in recent times after it closed the year 2020 at 467/$.

    At the I&E window, the naira fell by 0.17 per cent to close at 394/$ on Tuesday.

    It reached a low of 401 at the I&E window at the close of 2020.

    The Central Bank of Nigeria however maintained the official exchange rate at N379/$ on its website.

    The Association of Bureaux De Change Operators of Nigeria recently appealed to the CBN to make BDCs payout agents for diaspora remittances.

    The President, ABCON, Alhaji Aminu Gwadabe, said the apex bank should leverage the over 5,000 licensed BDCs across the country to get dollars seamlessly to beneficiaries.

    Gwadabe said this would help in providing a more convenient channel for Nigerians in the diaspora to remit funds back to the country to boost economic development.

  • Naira gains against dollar at parallel market

    Naira gains against dollar at parallel market

    The Naira on Friday firmed up against the dollar at the parallel market, gaining 20 kobo to exchange at N359 to the dollar, the News Agency of Nigeria (NAN) reports.

    The Nigerian currency traded at N359.20 at the market on Thursday, while the Pound Sterling and the Euro closed at N485 and N417, respectively.

    Trading at the Bureau De Change (BDC) window saw the naira close at N360 to the dollar, while the Pound Sterling and the Euro remained at N485 and N417, respectively.

    At the investors’ window, the naira was sold at N362.58, while it exchanged at N305.70 to the dollar at the Central Bank of Nigeria (CBN) window.

    NAN reports that the naira had remained stable at the market, hovering between N360 and N359 to the dollar.

    Meanwhile, the apex bank had begun sensitisation workshops for importers on the effective implementation of the Naira-Yuan exchange modalities.

    Experts were of the view that the China-Nigeria currency swap deal would lead to a further appreciation of the naira against the dollar across the entire segments of the market.