Naira Appreciates to ₦1,060/$1 in Parallel Market, Weakens to ₦1,154.08/$1 in NAFEM

The Nigerian Naira witnessed contrasting movements in currency markets yesterday, as it strengthened against the US dollar in the parallel market while simultaneously weakening in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
In the parallel market, the Naira saw a notable strengthening, trading at ₦1,060 per dollar compared to ₦1,105 per dollar recorded the previous day.
This uptick in value offered some relief to traders and consumers amidst concerns over currency stability and inflationary pressures.
However, the situation was different in the Nigerian Foreign Exchange Market (NAFEM), where the Naira reportedly weakened to ₦1,154.08 per dollar.
Data from the Financial Markets Dealers Quotations (FMDQ) revealed a significant increase in the indicative exchange rate for NAFEM, rising from ₦1,072.74 per dollar on Wednesday to ₦1,154.08 per dollar. This depreciation of ₦81.34 represents a concerning trend for the Naira’s value in official exchange markets.
The disparity, which expanded to ₦94.08 per dollar from ₦32.26 per dollar on Wednesday, reflects diverging perceptions of the Naira’s true value.
In a related development, the Central Bank of Nigeria (CBN) addressed circulating rumors regarding the sale of Foreign Exchange (FX) to Bureau De Change (BDC) operators at a rate of ₦1,001/$1.
Denying the authenticity of such claims, the CBN emphasized that the purported circular announcing the sale at that rate was fake.
The CBN reiterated its commitment to maintaining transparency and accuracy in its operations, urging Nigerians to rely on official channels for authentic information.
According to the apex bank, BDCs are required to sell FX to eligible end users with a margin of no more than 1.5 percent above the buying cost, emphasizing adherence to regulatory guidelines and market principles.
The circular reads: “We write to inform you of the sale of $10,000 by the Central Bank of Nigeria (CBN) to BDCs at the rate of N1001/$1.
“The BDCs are in turn to sell to eligible end users at a spread of NOT MORE THAN 1.5 percent above the purchase price.
“ALL eligible BDCs are therefore directed to commence payment of the Naira deposit to the underlisted CBN Naira Deposit Account Numbers from today Monday, April 17, 2024, and submit confirmation of payment with other necessary documentation for disbursement at the appropriate CBN branches.”
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