The Naira on Tuesday depreciated to N1,415 per dollar in the parallel market, from N1,410 per dollar on Monday.
Similarly, the Naira depreciated in the Nigerian Foreign
Exchange Market, NAFEM, to N1,416.57 per dollar. Data from FMDQ showed that the
indicative exchange rate for NAFEM fell to N1,416.57 per dollar from N1,354.21
per dollar on Monday, indicating N62.36 depreciation for the naira.
Consequently, the margin between the parallel market and
NAFEM rates narrowed to N1.57 per dollar from N55.79 per dollar on Monday.
However, Operatives from the Economic and Financial Crimes
Commission on Tuesday reportedly arrested some h Bureau De Change operators at
the pop”lar Wuse Zone 4 market on Tuesday.
This came as traders also said some BDC operators resisted
the arrest during a sting operation.
The operatives had embarked on routine raids to sanitise the
market of street traders and eliminate arbitrary trading.
Despite these efforts, the naira has continued on a free
fall.
On the rates, the operators said they bought the dollar at
N1,400 and sold at N1,425 per dollar leaving a profit margin of N25.
It also indicated an N5 drop from the N1,430 it sold on
Monday.
A trader, Malam Yahu, complained of the market fluctuation,
adding that it was now difficult to project what the rates would trade at.
He said, “Right now the market is just fluctuating, the
naira is not stable at all and that’s why we are even sceptical about buying
now. We can’t even predict how the
market will trade.
“For instance, after today’s arrest, I didn’t buy or make
sales to avoid a loss. I bought it earlier today at N1,400 and sold it at
N1,425.
“We have also noticed that once the prices go up, there will
be scarcity because they would expect the naira to drop further but if it’s at
a loss, they would then rush to sell it off.”
At the official market, data obtained from the FMDQ exchange
securities revealed that the currency depreciated to N1,416/$ from N1,354/$
recorded at the foreign exchange market on Monday.
The new rate Indicated that the naira dropped by 4.4 per
cent or N62, raising concerns about rapid fluctuations.
The intraday high increased to N1,445 on Tuesday from
N1,441/$1 recorded on Monday. The intraday low also depreciated to N1,301/$1 as
against N1,285/$1 it traded on Monday.
The volume of dollars supplied by willing buyers and willing
sellers however increased to $160.77m from $84.3m on Monday.
The former rate was the lowest point in approximately ten
weeks when daily turnover was $66.4 million, which occurred on February 19,
2024.
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