Naira Depreciates Against Dollar in Official, Black Markets Amid Eid-el-Kabir Celebrations
- The naira depreciated against the United States dollar across the official and parallel markets in Nigeria on Friday
- Even though starting well at the beginning of the week, the Nigerian currency could not maintain the momentum against the US currency
- The effect of the naira depreciation will be felt by the Muslim faithfuls hoping to celebrate the Eid-el-Kabir amid the hike in food items
Legit.ng journalist Victor Enengedi has over a decade of experience covering Energy, MSMEs, Technology, and the Stock Market.
On Friday, June 14, 2024, the naira weakened in the parallel segment of the foreign exchange market.
According to currency traders, popularly known as Bureau de Change (BDC) operators, the naira fell to N1,485 per dollar.
Source: UGC
Naira fails to stabilise across markets
These black market traders reported a buying price of N1,460 and a selling price of N1,485 for the dollar, resulting in a profit margin of N25.
The decline marks a N5 or 0.34% decrease from the N1,480/$ rate observed a month ago on May 10.
Also on Friday, the local currency depreciated by 0.44%, or N6.48, to N1,482.72 per dollar at the FMDQ Exchange, which manages official foreign exchange trading in Nigeria.
During trading hours, the dollar reached a high of N1,490 and a low of N1,390.
At these rates, the difference between the official window and the parallel market is N2.28.
According to TheCable, the daily foreign exchange market turnover was $183.47 million.
Naira depreciation effect of Sallah celebrations
The depreciation of the naira against the dollar often affects the prices of food items in the markets, thereby reducing purchasing power of Nigerians.
Coincidentally, in this case, the effect will be felt by the Muslim faithfuls hoping to celebrate the Eid-el-Kabir amid the hike in food and rams.
Yusuf Mudashiru, a Muslim preparing for the Sallah celebration told Legit.ng that the continued depreciation of the naira will affect essentials like food and travel.
He said:
"The decline of the Naira during Muslim Sallah celebrations amplifies economic strain, affecting purchasing power for essentials like food and travel.
"Families preparing for festivities face higher costs for food items and transportation to different locations, thereby diminishing the joy and accessibility of the occasion."
He added that the naira's depreciation underscores broader economic challenges, urging proactive measures for stability and recovery.
CBN working hard to improve naira value
It would be recalled that naira started the week on Monday, June 10, at a buying rate of N1,380 and the selling rate of N1,482 per dollar.
The naira's performance is related to a recent directive from the CBN instructing BDC operators to reapply for new operational licenses.
According to data released by the CBN, foreign remittances totalled $365 million in May 2024, marking an 80% annual rise compared to the May 2023 figure of $203.89 million.
FG declares 2-day public holiday for Eid-el-Kabir
In related news, Legit.ng reported that the federal government has declared two days as public holidays in honour of the Eid-el-Kabir celebration
Aishetu Ndayako, permanent secretary (PS) in the ministry of interior, announced the public holidays in a statement released on Friday, June 14
As with Eid al-Fitr, the Eid prayer is performed on the morning of Eid-el-Kabir, after which the ritual sacrifice of cattle may be performed.
PAY ATTENTION: Stay Informed and follow us on Google News!
Source: Legit.ng
