Naira Slides to 1,402/$ in Official Market amid Persistent Dollar Demand

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The official market witnessed a decline in the value of the naira as it dipped to N1,402 against the US dollar on Thursday, according to data from the FMDQ exchange securities.

Comparatively, this marks a decrease of N12 or 0.86 percent from the previous close of N1,390 on Tuesday, with no trading activities on Wednesday due to the Worker’s Day celebration.

Meanwhile, at the Nigerian Autonomous Foreign Exchange Market (NAFEX), the intraday high settled at N1,445 on Thursday, weaker than the N1,450 recorded on Tuesday. The intraday low also saw a depreciation to N1,299 on Thursday from N1,200 on Tuesday.

Dollar supply at NAFEX increased by 3.1 percent or $7 million to $232 million on Thursday compared to $225.36 million recorded on Tuesday.

This depreciation in the naira comes amid renewed demand for the greenback in both the official and parallel markets.

In April, the naira experienced a positive trend, gaining N28.15 on the final trading day to settle at N1,390.96/$, with a notable 52.45 percent surge in forex turnover, reaching $225.36 million from the previous volume of $147.83 million. However, despite this, the April 30 rate reflected a 5.8 percent depreciation from the beginning of April, where it stood at N1,309.39.

Additionally, Bureau De Change operators reported a reduction in the value of the naira at the parallel market on Thursday. Traders bought the dollar at N1,310 and sold it at N1,360, indicating a profit margin of N50.

Abubakar Yahu, a BDC operator in Wuse 2, Abuja, mentioned a marginal rise in the dollar’s value due to constant demand but not at the same rate as two months ago when the naira slid to N1,900.

He stated, “The naira depreciated today. We sell at N1,360 per dollar and we buy from customers at N1,310 depending on how you bargain. But we are expecting that the rate will drop tomorrow. Demand is still coming, it is not like before but it is still high.”

Ibrahim Isa, another currency trader in Ikeja, Lagos, echoed similar sentiments, emphasizing the need for the government to stabilize the naira for an extended period to foster economic stability.

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