Traders Sell Dollar at New Exchange Rate as Naira Falls Again Against US Dollar

• Nigerian currency, the naira's, depreciation against the US dollar extended in the foreign exchange market
• Latest data showed that the naira fell in both the official foreign exchange window and also the unofficial market
• The Central Bank of Nigeria will have to proffer a solution to stop the depreciation of the Nigerian currency

Naira continues to erase the gains achieved in official and unofficial foreign exchange markets in recent weeks.

The losses come despite efforts by the Central Bank of Nigeria to stabilise the market and ensure liquidity.

Many Nigerians have begun expressing concerns about where the naira is heading after weeks of strong performance.

Naira to dollar exchange rate

According to FMDQ Securities data on Wednesday, April 24, 2024, the naira closed against the dollar at N1,308.52/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official market.

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This represents a further depreciation of the naira by 0.6%, or N8.7, compared to the previous day's closing value of N1,300.15/$1.

Also, CBN data showed that the naira experienced losses on Wednesday against the pound sterling and the euro in the official market.

The exchange rate for the pound depreciated by N47.93, with the naira trading at N1,590.25/£1 compared to Tuesday's rate of N1,542.32/£1.

Against the euro, the naira depreciated by N34.88, trading at N1,367.23/€1 compared to the previous day's rate of N1,332.35/€1.

In the black market, the situation with the naira remained the same.

Bureau de change (BDC) traders who spoke to Legit.ng said that the naira depreciated against the dollar by N25, trading at N1,300/$1, which is higher than Tuesday's closing rate of N1,275/$1.

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Abudulahi a BDC trader at the airport said:

"The market is difficult to predict; the CBN is making efforts, but it is still experiencing a shortage of supply."

CBN sells dollars cheaply to BDC operators

Earlier, Legit.ng reported that the Central Bank of Nigeria again conducted another round of dollar sales to licensed Bureau De Change Operators.

The latest sale is part of the apex bank's plan to ensure enough liquidity in the market and halt the naira's fall.

The CBN has also fixed an exchange rate limit for the BDCs when selling to Nigerians seeking dollars.

Source: Legit.ng