Access, GTB, UBA, Others Sell Over $3Bn to Customers As Naira Nears N1,700/$ Exchange Rate

Access, GTB, UBA, Others Sell Over $3Bn to Customers As Naira Nears N1,700/$ Exchange Rate

  • The CBN's efforts to boost liquidity in the official foreign exchange market for naira stability are working so far
  • However, stability has not yet been actualized, as there is more dollar supply in the official foreign exchange market
  • The Nigerian currency struggled once again in the unofficial Peer-to-Peer Markets over the weekend journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

There was an increase in trading activities through the Nigerian Autonomous Foreign Exchange(NAFEM) by Deposit Money Banks.

Data from FMDQ Securities, where the Naira is officially traded, showed that a total transaction volume of $3.83 billion was carried out between February 2. 2024 and February 16, 2024.

CBN dollar sales
Naira to dollar exchange rate Photo credit: CBN
Source: Facebook

The improved liquidity at NAFEM followed a directive by the Central Bank of Nigeria, which had asked banks to sell their excess dollar stock and enhance liquidity in the Forex market.

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Commercial banks, the Central Bank of Nigeria and international oil firms are the major forex sellers at NAFEM.

Breakdown of the sales

Punch reports that the banks led others to sell $1.97 billion following the CBN instructions.

The breakdown of the sales is as follows: on Monday, February 5, 2024, a total transaction of $584.53 million was recorded.

On Tuesday, February 6, 2024, it was reduced to $465.29 million. On Wednesday, February 7, 2024, turnover was further reduced to $209.93 million. On Thursday, February 8, 2024, turnover increased to $321.23 million.

On Friday, February 9, 2024, turnover was $253.77 million.

From Monday, February 13, to Friday, February 16, the forex supply started at $116.11 million. It increased by $292.3 million to $381.92 million.

On Wednesday, the supply dropped to $117.87 million. On Thursday, the supply increased to $336.11 million. On Friday, the total supply dropped to $84.10 million.

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Naira to dollar exchange rate

Despite the improved supply, the Nigerian currency suffered heavy losses in official and black markets.

In the official market, the Naira exchanged for N1,537.96 against the US dollar on Friday, February 16, 2024.

Over the weekend, the Naira dropped to N1,658.3/$ in the Peer-to-Peer market, while black market traders sold the dollar at N1650.

FG addresses the Naira the dollar exchange rate earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira would strengthen in value in the foreign exchange market in 2024.

Speaking in an interview with Channels TV on Tuesday, December 26, 2023, Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.

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