Naira Falls to Lowest 24 Hours after EFCC, BDC Officials Agree to Spoil Black Market

• The naira depreciated to its lowest again in the official and parallel markets
• Intraday trading in the official saw the naira plummet to about N1,399 per dollar and a low of N789 per dollar in the official market
• The naira experienced its worst performance against the dollar in the parallel market, falling to N1,416 per dollar

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The Nigerian foreign exchange market saw a historic decline in the value of the naira, which reached an unrivalled intraday high of N1,399 per dollar at the official market on Thursday, January 25, 2024.

Data from FMDQ show a significant 6.15% drop compared to the N1,313 rate observed during the intraday trading a day earlier.

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EFCC agrees with BDCs to spoil black market rate as one dollar sells for over N1,400

The naira declines sharply in official market

Also, the intraday low saw a significant 11.28% drop as the dollar was quoted at N789 on Thursday, January 25, 2023, in contrast to N700 on Wednesday, January 24, 2024.

At the end of trading, the naira fell by 2.08% to close at N900.96 per dollar from the N882.24 recorded on Wednesday, January 24, 2024, at NAFEM.

The naira also fell to its lowest in the parallel market at N1,416 per dollar

BusinessDay reports that the drop is attributed to high demand and a shortage of dollars as traders prefer to hoard limited currency.

Cardoso says the naira is grossly undervalued

The current FX rate shows a substantial 15.9% yearly decline when compared to the N1,200 rate recorded at the beginning of January 2024.

The development comes as the Governor of the Central Bank of Nigeria, Olayemi Cardoso emphasized a coordinated approach with fiscal measures to hasten the process, saying the naira is currently undervalued.

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Cardoso highlighted collaborative efforts, pointing to initiatives to ensure that all FX inflows go through the CBN.

EFCC agrees with BDCs to spoil black market Rate

Legit.ng reported that the Association of Bureaux De Change Operators of Nigeria (ABCON and the Economic and Financial Crimes Commission (EFCC) have agreed to crash the dollar rate at the black market.

The decision was reached after a meeting at the EFCC headquarters in Abuja, attended by EFCC Chairman Ola Olukayode and the ABCON National Executive Council (NEC) led by its President, Aminu Gwadabe.

During the meeting approval for ABCON to establish a common website for Bureaux de Change (BDCs) rate and trading platform was reached.

Source: Legit.ng