April 24, 2024

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Naira Crashes In Official Market As Daily Forex Turnover Jumps To $857m

The naira experienced a slight crash against the US dollar during the intraday trading at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, March 28, 2024. Traders quoted the dollar at N1,392.00 per dollar during intraday haggling and a low of N1,250 per dollar.

Data from FMDQ shows that the Nigerian currency depreciated slightly against the US dollar, closing at N1,309.39 per dollar, as against the N1,300 it traded the day before.

The naira’s depreciation comes as the Nigerian currency has maintained a strong momentum against the US dollar in the last two weeks following a series of actions by the Central Bank of Nigeria (CBN) to stabilise the economy. The apex bank announced the sale of Forex to Bureau de Change (BDC) operators at N1,251 per dollar, directing the operators to sell at least N1,269 per dollar.

However, daily turnover spiked at the Forex market to $857 million on Thursday, March 28, 2024, the highest since CBN’s policies were enacted. According to reports, the turnover is the highest since 2021, surpassing the 2022 figure of $760 million recorded on June 2 2022. Daily Forex turnover at NAFEM has averaged around $220 million in March 2024.

The exchange rate between the naira and the dollar closed at N1,300 per dollar on Wednesday on the official market, which analysts say is the strongest performance against the dollar in eight weeks. Information from the Nigerian Autonomous Foreign Market (NAFEM) indicates that the naira rose to N1,300 per dollar on the official market. Also, the exchange rate in the parallel market hovered between N1,250 and N1,300 for cash and inflows.