Currency Dealers, Banks and Others Sell Dollars at New Rates as Turnover Rises in Official Market

Currency Dealers, Banks and Others Sell Dollars at New Rates as Turnover Rises in Official Market

  • The Nigerian currency, the naira, depreciated in the official and parallel markets after the Eid-el Adha holidays
  • The US dollar sold for N1,483.02 per dollar in the official market and N1,505 in the parallel market
  • The official FX market witnessed a supply of $150.73 million compared to the $183.47 million recorded on Friday, June 14, 2024’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Nigerian currency depreciated in the official market after the holidays as the scramble for the dollar increased.

Analysts point to the resumption of business activities as the reason for the increased dollar demand, stating that most businesses and importers already placed requisitions for the US greenback before the holidays.

Dollar records high demand in FX markets
The naira depreciates in the official and parallel markets after the Eid holidays Credit: Bloomberg/Contributor
Source: Getty Images

Traders place high demand on the dollar after holidays

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Forex traders sell pound, euro at new exchange rate as Naira depreciates

The naira traded slightly low in the official foreign exchange market at N1,483 to the dollar on Wednesday, June 19, 2024, compared to the N1,473 it traded on Friday, June 14, 2024.

Currency traders quoted the dollar at an intra-day high of N1,514..82 to the and a low of N1,390.

Data from the FMDQ Exchange shows that the Nigerian foreign exchange market witnessed an improved forex supply, which rose to $150.73 million. Analysts say this prevented the naira from depreciating more than it did.

The naira depreciates in the parallel market

Meanwhile, the naira traded flat in the parallel market, also known as the black market, with a marginal loss of 0.02%., a BusinessDay report said.

Bureau de Change operators increased the selling exchange rate for the US dollar in the black market, also known as the parallel market. 

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BDC traders sell dollar, euro, pound at new rate after public holidays

According to traders who spoke to on Wednesday, June 19, 2024, a dollar now sells for N1,505 in the black market.

This is higher than the N1,490.1 quoted on Tuesday, June 18, as the country observes public holidays for the Eid-ul-Adha celebration, Legit. ng reported

Financial tech companies such as Chipper Cash are quoting N1,654.8 as an exchange rate to sell dollars to customers.

Financial experts say the naira's depreciation at both ends of the FX markets is due to the halt in forex sales to BDC traders by the Central Bank of Nigeria (CBN).

Another currency emerges as the best-performing in Africa previously reported the Kenyan shilling currency has risen to a 15-month high against the US dollar.

The last time the shilling performed this strong was in March last year, rising from Shs161 per dollar to Shs 128.66 to remain one of the best-performing currencies in Africa.

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Good news for naira as CBN announces new support to stabilise foreign exchange market

Reports show that the performance is due to improved agricultural export inflows as dollar demand thaws among importers.


Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner.