Would you like to receive notifications on latest updates of the following headlines?

Naira Falls to N1,234/$ at Official Market as Speculators start Hoarding Again

POSTED ON April 23, 2024 •   BUSINESS & ECONOMY      BY Abiodun Saheed Omodara
Exchange of Naira to U.S Dollar l Credit: gazettengr l Source: gazettengr.com

The official foreign exchange market recorded the depreciation of the naira against the US dollar to N1,234 on Monday, according to data from the FMDQ securities exchange.

This represents a 5.26% decrease from the N1,169.99/$1 rate on Friday, with the naira falling by N65.

Earlier in the week, the local currency had strengthened to approximately N1,072.74, leading to projections of it trading below N1,000/$1 for the first time.

However, this recent drop seems to align with the comments made by the apex bank Governor, Yemi Cardoso, who indicated that the bank's intention was not to defend the naira when questioned about the sudden decline in external reserves.

Nigeria's foreign exchange reserves have experienced a one-month decline, reaching a new low of $32.1bn on April 18, 2024, according to the latest figures from the Central Bank of Nigeria.

This represents a decrease of $2.35bn from the $34.45bn recorded on March 18, 2024.

Despite this, the CBN governor stated at the International Monetary Fund/World Bank Spring Meetings that the bank would refrain from intervening in the exchange unless unusual circumstances arose, emphasizing that the recent decrease in reserves was not related to defending the naira.

The national currency had faced significant challenges in the forex market prior to the clampdown on Binance, with exchange rates reaching as high as N1,950 in mid-February.

Observers blamed its earlier misfortune on alleged manipulation of the market by Binance. However, some stakeholders have accused the new crypto exchange platforms BYBIT and BITGET for the latest slip.

Analysts suggested that the naira experienced a depreciation over the span of six months from July 2023 to January 2024, particularly evident in the black market following the disbursement of funds by the FAAC to federal, state, and local government authorities.

The summary of the forex transaction showed that the intra-day high depreciated, closing at N1,295 per dollar. The intra-day low also reduced to N1,051/$. While the total daily turnover dropped slightly to $110.17m on Monday.

At the parallel market, currency traders sold the dollar between the rate of N1,250 and N1,270 from N1,154 recorded last Friday.

READ ALSO
Reinventing Nigeria’s Fiscal Framework: A Call for Unity and Responsibility
BY Abiodun Saheed Omodara July 8, 2025 0

President Bola Tinubu has emphasized his government's dedication to allocating sufficient resources...

READ ALSO
CBN Mandates Capital Restoration Plans for Banks: A Step Towards Regulatory Compliance
BY Abiodun Saheed Omodara July 8, 2025 0

The Central Bank of Nigeria has instructed banks to provide a capital restoration plan as part of it...

READ ALSO
Two Men Charged in CBEX Investment Scheme Remain in Custody
BY Abiodun Saheed Omodara July 8, 2025 0

A Federal High Court in Abuja has placed two businessmen, Aweruso Otorudo and Chukwuebuka Ehirim, in...

READ ALSO
Nigerian States Accumulate N417.7 Billion in Domestic Debt Amid Rising FAAC Revenue
BY Abiodun Saheed Omodara July 7, 2025 0

At least 10 Nigerian states have cumulatively increased their domestic debt by N417.7 billion from t...

READ ALSO
Tinubu Pledges to Eliminate Bureaucratic Hurdles in Agriculture During Bilateral Talks with Brazil
BY Abiodun Saheed Omodara July 6, 2025 0

President Bola Tinubu expressed his commitment on Saturday to his Brazilian counterpart, Luiz Inacio...

READ ALSO
Nigerian Investors Launch $5 Billion Cooperative Trust Fund to Empower MSMEs
BY Abiodun Saheed Omodara July 6, 2025 0

A coalition of Nigerian investors has introduced a Cooperative Trust Fund valued at $5 billion, aime...

READ ALSO
Nigeria Aims to Eliminate Routine Flaring by 2030 and Cut Methane Emissions by 60% by 2031
BY Abiodun Saheed Omodara July 3, 2025 0

The Nigerian Upstream Petroleum Regulatory Commission has announced that its gas-focused transition...

READ ALSO
NNPCL Revamps Financial Discipline, Collaborate with Independent Producers
BY Abiodun Saheed Omodara July 3, 2025 0

The CEO of Seplat Energy Plc, Roger Brown, stated that the Nigerian National Petroleum Company Limit...

OUR CHANNELS:

Reinventing Nigeria’s Fiscal Framework: A Call for Unity and Responsibility
BY Abiodun Saheed Omodara July 9, 2025 0

President Bola Tinubu has emphasized his government's dedication to allocating sufficient resources...


CBN Mandates Capital Restoration Plans for Banks: A Step Towards Regulatory Compliance
BY Abiodun Saheed Omodara July 8, 2025 0

The Central Bank of Nigeria has instructed banks to provide a capital restoration plan as part of it...


Nigeria Faces Teacher Shortage: Over 31 Million Learners Rely on Just 915,913 Educators
BY Abiodun Saheed Omodara July 9, 2025 0

According to data from the Universal Basic Education, only 915,913 teachers are available for at lea...


Tinubu Calls for Equitable Global Framework at BRICS Summit
BY Abiodun Saheed Omodara July 8, 2025 0

President Bola Tinubu has advocated for a more equitable global framework regarding climate action,...


Two Men Charged in CBEX Investment Scheme Remain in Custody
BY Abiodun Saheed Omodara July 8, 2025 0

A Federal High Court in Abuja has placed two businessmen, Aweruso Otorudo and Chukwuebuka Ehirim, in...


LASG Takes Action, Dismantled  Illegal Checkpoints Along Badagry Expressway
BY Abiodun Saheed Omodara July 8, 2025 0

LAGOS, Nigeria - The Lagos State government has dismantled illegal checkpoints along the Lagos&ndash...


Natasha's Return Plans on Hold as Senate Awaits Court Judgment Copy
BY Abiodun Saheed Omodara July 8, 2025 0

The suspended Senator representing Kogi Central, Natasha Akpoti-Uduaghan, has declared her intention...


Nigerian States Accumulate N417.7 Billion in Domestic Debt Amid Rising FAAC Revenue
BY Abiodun Saheed Omodara July 8, 2025 0

At least 10 Nigerian states have cumulatively increased their domestic debt by N417.7 billion from t...


Governor Otti Facilitates Release of Inmates After 26 Years
BY Abiodun Saheed Omodara July 9, 2025 0

Governor Alex Otti of Abia State on Saturday welcomed three Nigerians who were released after spendi...


Tinubu Pledges to Eliminate Bureaucratic Hurdles in Agriculture During Bilateral Talks with Brazil
BY Abiodun Saheed Omodara July 9, 2025 0

President Bola Tinubu expressed his commitment on Saturday to his Brazilian counterpart, Luiz Inacio...


More Articles

Load more...

Menu