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Dollar Bounces Back, Appreciates Against Naira in Official Market

The value of the United States Dollar has appreciated against the Nigerian currency after days of lossesLatest data shows that the US Dollar improved marginally against the Naira in the official market but dropped in the parallel marketThe Central Bank of Nigeria will be hoping to sustain the current exchange rate or take measures to help the naira recover

Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The value of the Naira depreciated in the official foreign exchange market at the close of trading on Thursday, February 7.

Data from FMDQ securities showed that at the The Nigerian Autonomous Foreign Exchange Market showed the forex market closed at N1500.65/1$ on Thursday.

Dollar appreciates against naira.
Photo credit: Bloomberg/contributor
Source: Getty Images

Thursday’s rate represents a slight depreciation when compared to the exchange rate of N1,499.76/$1 reported on Wednesday market.

Read also

Dollar crashes again, official, black market exchange rate gap now N30

The latest performance of the naira means that the Nigerian currency has depreciated for two consecutive days against the US Dollar.

Naira against dollar in black market

It was a different scenario for the Naira in the parallel market, popularly known as the black forex market.

BDC operators told Henzodaily.ng that the dollar crashed further on Thursday, February 6, and now sells at N1,552, while the buying rate was quoted at N1,530

The latest development marked an improvement from the N1,582 selling rate and the N1,565/$ buying rate quoted on Wednesday.

Naira/dollar: Official and unofficial market rate gap closes

The latest movement in the naira exchange rate indicated that the gap between the official and black markets is nearing convergence.

With the black market exchange rate now at N1,530/$, and official rate at N1500.65/ the gap between the official and black markets is now N30.

Read also

New exchange rate: Naira closes negatively in official market, gains in parallel window

CBN latest naira rates against other currencies

Here is the latest exchange rates of against other currencies on Nigerian Foreign Exchange Market (NFEM).

NFEM rate is derived at Volume Weighted Average and stands as the official exchange rate for the day.

CFA – N2.38Yuan/Renminbi – N205.75Danish Krona – N208.47Euro – N1555.18Yen – N9.87Riyal – N399.92South African Rand – N80.81Pounds Sterling – N1859.98

CBN permits BDCs to buy dollar from official sources

The CBN recently announced that it had extended the window of allowing Bureau De Change (BDC) operators to buy FX from the official market until the end of May.

This policy allows BDCs to purchase $25,000 worth of forex per week and should not resell to their customers at a profit margin above one per cent.

Also, BDCs can only disburse purchased FX for specific transactions, with a maximum of $5,000 per transaction, quarterly.

Read also

Dollar crashes massively against naira, traders now sell at new exchange rate

CBN increases dollar rate to clear goods at ports

Henzodaily.ng reported that the Central Bank of Nigeria has adjusted the customs exchange rate for clearing goods at the nation’s ports and airports.

The latest data shows that the new exchange rate represents a slight increase from the previous rate.

The import duty exchange rate reflects the performance of the naira in the official foreign exchange market.

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Source: Henzodaily.ng

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