Currency speculators win as Naira trades flat for first time in two months

Traders sell the dollar at new rates as CBN stops intervention

The Nigerian naira traded at its lowest in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

Some traders sold the dollar at N1,410 per dollar in various areas across Nigeria on Friday, May 3, 2024, as demand increased amid dollar scarcity.

Some traders said the demand came from individuals who needed the dollars for businesses, personal travel, or imports.

At the official FMDQ Exchange, the naira exchanged for N1,400.40 per dollar as against the N1,402 it was quoted on Thursday, May 2, 2024.

The official window witnessed increased shifts in currency values. Traders quoted the dollar at an intraday high of N1,435 per dollar and a low of N1,300.40.

Despite various measures the Central Bank of Nigeria (CBN) took to enhance FX liquidity, pressure on the naira continued.

The Nigerian currency witnessed its best moment in April 2024, when it emerged as the best-performing currency in the world.

CBN says dollar supply improved in two months

The CBN governor, Olayemi Cardoso, said the Nigerian forex market is experiencing robust activities, with turnover reaching a seven-year high.
He stated that the liquidity boost inspires confidence among investors, businesses, and other partners, ensuring enough fluidity in their interactions with Nigeria’s forex market.

The CEO of the Centre Promotion of Private Enterprise (CPPE), Muda Yusuf, said that the apex bank might even lack the capacity to allow the currency to float due to the imperfections in the economy.

The dollar index declined against six major currencies, hitting its lowest since April 11 at about 105.2 index points.

The decline marks a one per cent drop over the week, showing the potential for the dollar to experience its most substantial weekly loss in almost two months.

CBN adjusts customs exchange rates

Legit.ng earlier reported that despite expert advice, the Central Bank of Nigeria (CBN) has again adjusted the Customs exchange rates for cargo at Nigerian ports.

The apex bank fixed the exchange rate for Customs duty collection at N1,441.53 per dollar from the N1,373.64 it fixed the rate two days ago.

The figure represents an increase of N61 from the former amount.