July 22, 2024
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The foreign exchange turnover saw a significant rise of 76.61% to $117.32 million, coinciding with the Nigerian naira’s strengthening against the dollar in the official market on Tuesday, February 20th, 2024.   

However, despite this improvement, the intra-day high remained elevated, reaching N1,701 against the dollar by the close of trading. 

In contrast, the exchange rate experienced a decline in the black market, slipping to N1,700/$1, representing a 2.65% decrease compared to the previous day’s rate.  

Despite the Central Bank of Nigeria (CBN)’s implementation of various policies aimed at enhancing forex supply, challenges in this regard persist. 

According to data from the NAFEM (Nigeria Autonomous Foreign Exchange Market), where forex is officially traded, the domestic currency appreciated by 3.03%, closing at N1,551.24 to a dollar at the end of the business day. 

This represents an N47.00 gain or a 3.03% increase in the local currency compared to the N1,598.24 closed on Monday.  

The intraday high recorded a N1701/$1, while the intraday low was N1100/$1, representing a wide spread of N601/$1.  

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $117.32 million, representing a 76.61% increase compared to the previous day.  

However, the Naira depreciated against dollar in the parallel forex market, where forex is unofficially traded, with the exchange rate quoted at N1,700/$1, reflecting a 2.65% decrease from the N1,655 rate it closed at the previous day.   

Additionally, the Naira weakened against the Euro by 4.97%, closing at N1810/EUR1 compared to N1720/EUR1 reported the previous day.  

The Great British Pound (GBP) closed at £1/N2120, a decline from £1/N2,040 recorded the previous day, this marks a notable decrease of 3.77% compared to the N2,040 rate recorded the previous day.  

In the cryptocurrency market where forex is sold using stablecoins, the Naira also settled at N1,802.44/$1.  

The National Security Adviser’s Office, led by Nuhu Ribadu, in collaboration with the Central Bank of Nigeria (CBN), has initiated a joint effort to combat forex speculation and tackle the issues affecting the country’s economic stability.  

In a statement on Tuesday, a spokesperson for Ribadu’s office, Zakari Mijinyawa, said the partnership is set to include coordinated actions with leading law enforcement agencies such as the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU).   

Mijinyawa pointed out that the activities of speculators, operating both domestically and internationally through different mechanisms, have played a significant role in the naira’s depreciation, thereby exacerbating inflation and leading to economic instability in Nigeria.  

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