Naira dips Against the Dollar Despite Governments Effort to Defend it.

The Nigerian currency, naira experienced a decline on Thursday afternoon, falling to N1,470 per dollar in the parallel market.

This represents a decrease of 8.30% or an N140 difference from the N1,330 reported earlier in the morning.

This information is according to the data culled from currency traders. The Bureau De Change (BDC) operators listed the purchase rate at N1,360 and the approximate selling rate at N1,470, yielding a N120 profit margin.

The Central Bank of Nigeria (CBN) is ramping up dollar supplies through the BDCs to minimize pressure on the foreign exchange market and lower inflation.

On April 23rd, the CBN lowered the foreign exchange rate for dollar distributions to BDCs, offering $10,000 at N1,021 per dollar, which is roughly 21% below the official rate reported by Financial Market Dealers Quotation (FMDQ). The move was aimed at enhancing liquidity in the unofficial market.

The apex bank early last month had cleared over $137 million airlines’ outstanding obligations, bolstering confidence in the forex market.

These CBN’s initiatives have tempered forex scarcity, aiding the naira’s recovery from an early March rate of N1,617 per dollar to N1,072 per dollar on the 18th of April this year.

At the official market, the Nigerian naira depreciated to N1,309.88 against the dollar by the end of Thursday’s trading. This is a 0.10% drop, from the previous rate of N1,308.52 recorded on Wednesday morning.

• In the parallel market, the Naira experienced a decline, falling to N1,450 against the dollar from its previous rate of N1,330.
• Also, the Naira saw a depreciation of 7.06% against the British pound, ending the day at N1,700 compared to the morning’s rate of N1,580.
• The Naira weakened by 8% in relation to the euro, closing at N1,500 per euro, down from N1,380 earlier in the day.
• Forex trading volumes experienced a significant increase of 15.40%, with transactions reaching $245.58 million, exceeding the $212.8 million previously recorded.
• There is a 18-day downward trend in reserves, which was followed by a marginal recovery of 0.018% on Tuesday, bringing total reserves’ value to $32.112 billion from the $32.109 billion reported on March 22^nd this year.
• In the parallel market, the naira experienced a decline, falling to N1,450 against the dollar from its earlier rate of N1,330.