The naira on Thursday continued its downward trend against the United States dollar, depreciating to N1,309/$ at the official market and N1,420 at the parallel market.

The new rate which indicates a depreciation of N90 or 6.8 per cent from N1,330 quoted by currency traders on Wednesday followed renewed dollar demand pressure in the foreign exchange market.

According to currency traders at the popular Wuse Zone 4 market, operators bought the greenback note at N1,340 and sold it at N1,420, leaving a profit margin of N80.

Malam Yahu Abubakar in a telephone chat said, “We are selling at N1,420 per dollar today and we bought at N1,340. The only reason why the naira is dropping is because of an increased demand for the greenback. The CBN is trying to address the situation but it has not affected the market.”

Another trader, Abubakar Taura, expressed caution in trading, citing ongoing concerns that the CBN might take some drastic measures to stabilise the dollar.

This apprehension, he explained, was driving high-profit margins, providing traders with an opportunity to recover losses.

“Yes, the dollar is rising gradually but we are still afraid and trading cautiously because anything can happen and it falls. You would have noticed that the profit margin is high too. We have to recover some of our losses.”

With the current exchange rate, the naira has lost 26.2 per cent in two weeks when compared to N1,125 per dollar quoted on April 12, 2023, on the parallel market, popularly called the black market.

On Monday, the Central Bank of Nigeria approved the allocation of $15.83 million to 1,583 BDC operators. The move was aimed at enhancing liquidity in the unofficial market.

The CBN in a letter to BDCs announced the allocation of $10,000 to operators across the country. The allocation comes at a rate of N1,021 per US dollar, aimed at stabilsing the foreign exchange market and ensuring accessibility of foreign currency to eligible end users.

According to a letter released by the CBN to the Association of Bureau De Change Operators of Nigeria, all eligible BDCs are directed to initiate payments of the Naira deposit to specified CBN Naira Deposit Account Numbers starting from Monday, April 22, 2024. Upon submission of confirmation of payment and necessary documentation, the CBN will disburse foreign exchange at the respective CBN branches.

At the official market, the naira depreciated to N1,309.88 against the dollar by the end of Thursday’s trading. This is a 0.10 per cent drop, from the previous rate of N1,308.52 recorded on Wednesday.

A summary of the forex transaction showed that the intra-day high depreciated by N68, closing at N1,435 per dollar from N1,367 per dollar. The intra-day low reduced to N1,100 from N1,098 recorded on Wednesday.

Forex trading volumes between a willing seller and a willing buyer experienced a significant increase of 61 per cent, with transactions reaching $318.08m, exceeding the $197.54m previously recorded at the Nigerian Autonomous Foreign Exchange Market on Wednesday.

Over the weekend, the CBN Governor, Yemi Cardoso, stated the Naira was declared the best-performing currency globally as of April 2024.

The naira had the unenviable position of being the worst currency in the country in March when it fell to as low as N1,600/$1 on the official market and N1800/$1 on the parallel market

This achievement follows a series of foreign exchange market reforms and is supported by positive sentiment from leading international investment institutions, he declared.

Cardoso made this remark in a press briefing on the sidelines of the just concluded World Bank/IMF meeting in Washington DC, United States.

However, it remains to be seen what strategies will be used by the apex bank to ensure the stability of the naira for a longer period.

Source: https://www.google.com/amp/s/punchng.com/dollar-demand-pushes-naira-to-1420/%3famp

Another Increase Again, God Almighty Help Me

Tinubu did not understand the meaning of floating the Naira before they implemented it. The ARTIFICIAL Naira appreciation in the past few weeks is simply because the CBN had been furnishing BDCs with dollars at absurd rates.

Now that they've been called out for depleting the Foreign Reserves by trying to defend the Naira, they've cut back a little and Naira is finding its real baseline.

Fun fact: it's NOT there yet. The exchange rate will get worse.

Holly Gram


EBIN PAWA ooo !!!


LITE UP my WEED in peace


WTF MAN!

The upward trend begins again

Just as we knew it would rise again.

Emi lo corn

Reading my queen primer
I go up, up l go
Am I to go up?

And I sing...
Higher higher everyday
I will lift my dollar higher everydayyyyy

Degree holder in economics my foot

No, na crypto cause am.


Banned everything related with crypto and forex and see Nigeria become an Eldorado...


Idiot government and its dumb, hungry foot soldiers.


Atleast we can now live comfortably with the increase knowing that a decrease won't improve standard of living.

Una don start again.

2024 Year of Naira Vs Dollar rise and fall battle...

I just hope last last Naira Truimphs sha

Hahehaho i laff in Otuguan.
Government of the Clueless....

We are handling over ...


APC is teaching is a lesson.

I no go lie, the dollar rise is favouring folks around me. And I'm benefitting from it.

I am at crossroad weda to pray for its rise or fall...

Nigeria is gone! Forget this country.

Where is Senior Advocate of Naira Appreciation,Reno?So much speculation is going on, banks and BDC need close monitoring..

Hmm

This is where reno comes in

Who will they blame this time around? The thing about lieing is that you need to tell more lies to sustain the old ones

Allow cards to work internationally,especially as we are not self sufficient….when everyone can easily access dollars,demand/price will reduce when supply is excess

Nigeria and 'short term solutions to long term problems' ehn.
Who on earth uses reserves to subsidized a Foreign currency rather than looking for ways to earn the foreign currency. This country daftness dey shock me.

So, what can reduce the demand for dollar? That's the multimillion dollar question

Maybe now they will blame bet9ja and Opay for this depreciation naira appreciated to around 1000 per dollar but it didn't reflect in the price of goods in the market, yet zombies were jubilating that their Messiah has defeated dollar

Back to where we were before. Chai! Which way Nigeria.

I was hoping dollar would get back to 700 naira that Tinubu met it.

Mystery of babylon and it lies called government continues.......

Alright then.

Make una stop jare. Tinubu has hit the ground running 😂😂😂 He's First class graduate of Accounting. From University of Chicago. He has transformed Lagos into Dubai and will replicate it in Nigeria 😂😂😂

The dollar news don dey carry blame game again a la APC style.

Reno food don done

Boogyman557:
Holly Gram


EBIN PAWA ooo !!!


LITE UP my WEED in peace


WTF MAN!

no right thinking, hardworking adult Nigerian will find this amusing, nairaland should start removing kids like this idiot, it's so obvious den dey feed am..spits

Oh wow