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      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
CBN adjusts ATM transaction fees amid rising operational costs
BY Abiodun Saheed Omodara February 12, 2025 0

The Central Bank of Nigeria (CBN) has revealed a significant adjustment to its Automated Teller Mach...

READ ALSO
NCS suspends 4% FOB levy on imports
BY Abiodun Saheed Omodara February 11, 2025 0

The Nigeria Customs Service (NCS) has announced the temporary halt of the contentious 4% Free-on-Boa...

READ ALSO
Domestic refiners challenge crude producers over lack of allocations
BY Abiodun Saheed Omodara February 10, 2025 0

Access to crude oil for domestic refiners, including modular refineries, has remained nearly nonexis...

READ ALSO
NECA raises alarm over 4% customs administration charge
BY Abiodun Saheed Omodara February 10, 2025 0

The Nigeria Employers’ Consultative Association (NECA) has expressed its worries regarding the...

READ ALSO
IFC commits $50m to transform LFZ into Industrial Hub
BY Abiodun Saheed Omodara February 8, 2025 0

LAGOS, Nigeria - The International Finance Corporation (IFC) has declared a $50 million equity inves...

READ ALSO
Shettima launches DMO supervisory board to enhance fiscal, monetary policy coordination
BY Abiodun Saheed Omodara February 6, 2025 0

Vice President Kashim Shettima has launched the Supervisory Board of the Debt Management Office (DMO...

READ ALSO
NCS introduces 4% fee on import FOB value
BY Abiodun Saheed Omodara February 6, 2025 0

The Nigeria Customs Service has introduced a 4 percent fee based on the free-on-board (FOB) value of...

READ ALSO
NCS introduces 4% fee on import FOB value
BY Abiodun Saheed Omodara February 6, 2025 0

The Nigeria Customs Service has introduced a 4 percent fee based on the free-on-board (FOB) value of...

OUR CHANNELS:

Sagna urges Arsenal to stay focused amid Liverpool title chase
BY Abiodun Saheed Omodara February 11, 2025 0

With Arsenal behind Liverpool in the Premier League title contention, former defender Bacary Sagna h...


TikToker's legal team issues 24-hour ultimatum to RCCG, Adeboye  over arrest statement
BY Abiodun Saheed Omodara February 11, 2025 0

In an unexpected development, the Redeemed Christian Church of God (RCCG) and its General Overseer,...


Penalty points system activates for traffic offenders- FRSC
BY Abiodun Saheed Omodara February 11, 2025 0

ABUJA, Nigeria (NAN) - The Federal Road Safety Corps (FRSC), corps marshal, Shehu Mohammed, has orde...


Businessman kills friend in Ikoyi-police
BY Abiodun Saheed Omodara February 10, 2025 0

LAGOS,Nigeria - The Nigerian Police have apprehended a murder suspect in Lagos. The individual, iden...


LASG to expand Red Line Rail service to enhance commuting efficiency
BY Abiodun Saheed Omodara February 10, 2025 0

LAGOS, NIgeria- Governor Babajide Sanwo-Olu of Lagos State on Sunday, made a significant announcemen...


Domestic refiners challenge crude producers over lack of allocations
BY Abiodun Saheed Omodara February 10, 2025 0

Access to crude oil for domestic refiners, including modular refineries, has remained nearly nonexis...


Adamawa Govt. refutes dismissed REC's claims on 2023 election results
BY Abiodun Saheed Omodara February 10, 2025 0

The Adamawa State Government has refuted the recent assertion made by the dismissed Resident Elector...


NECA raises alarm over 4% customs administration charge
BY Abiodun Saheed Omodara February 10, 2025 0

The Nigeria Employers’ Consultative Association (NECA) has expressed its worries regarding the...


Nasarawa University set for indefinite strike on Monday
BY Abiodun Saheed Omodara February 10, 2025 0

Academic and non-academic personnel of higher education institutions in Nasarawa State, operating un...


UNICEF Urges Kano Govt. to intensify polio combat, routine immunisation efforts
BY Abiodun Saheed Omodara February 12, 2025 0

KADUNA, Nigeria (NAN) - The United Nations Children’s Fund (UNICEF) has urged the Kano state g...


More Articles

Load more...

Menu