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    Saturday, July 6, 2024

    Naira’s Value Declined further in Parallel Market, Reaching N1,260 per Dollar


    The Nigerian naira experienced a reversal of its three-day depreciation trend within the parallel segment of the foreign exchange market on Friday.

    On July 5th, the local currency experienced an appreciation of 0.98 percent, moving from N1,535 to N1,525 per dollar.

    Foreign exchange traders, commonly referred to as bureau de change (BDC) operators, provided the naira’s buying rate at N1,500 and the selling rate at N1,525, resulting in a profit margin of N25.

    At the official window, the naira reversed a three-day depreciation trend.

    As per the official FX trading platform in Nigeria, FMDQ Exchange, the local currency was traded at N1,509 per dollar on July 5th, marking a 0.7 percent increase from the previous day’s N1,520 exchange rate.

    The local currency fluctuated between a high of N1,535 and a low of N1,450 during the trading session.

    Consequently, the exchange rate in both market segments experienced a consecutive depreciation from July 1 to July 4, followed by an appreciation on July 5.

    Three-Day Decline

    On July 2nd, there was a slight devaluation of the local currency observed in the informal market, with the exchange rate shifting from N1,510 to N1,515 per US dollar.

    Subsequently, between July 3rd and 4th, the naira exhibited a further decline, reaching N1,520 and N1,535, respectively.

    The FMDQ Exchange reported a depreciation in the value of the naira against the US dollar. Specifically, the naira depreciated to N1,509, N1,512, and N1,520 on July 2, 3, and 4, respectively.

    On June 14, 2023, the Central Bank of Nigeria (CBN) declared the unification of all sectors of the foreign exchange market.

    The recent currency devaluation has caused significant fluctuations in the foreign exchange market, impacting various sectors of the economy. According to Timi Bomodi, Comptroller of Seme Command, Nigeria Customs Service (NCS), on June 9, this situation has made Nigerian goods more affordable for other African countries.

    Nevertheless, on May 29, Mojisola Adeyeye, the esteemed director-general of the National Agency for Food and Drug Administration and Control (NAFDAC), elucidated that the depreciation of the naira currency has been a significant contributing factor to the elevated cost associated with the domestic production of pharmaceutical products.

    However, on June 25, Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), expressed his belief that the excessive volatility may be a thing of the past.

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