Currency dealers, banks sell dollar at new rates after CBN crashed forex to N1,101 per dollar

The Nigerian naira continued its gain against the US dollar and major currencies in the official and parallel markets on Monday, April 8, 2024.

The naira traded at N1,230.60 per dollar on the official foreign exchange market despite Nigeria’s FX reserves declining by $1.5 billion.

At the close of trading on Monday, April 8, 2024, the naira gained about 1.66% as the dollar traded at N1,230.61, better than the N1,251 it traded on Friday, April 5, 2024, at the official Forex market.

Traders quoted the dollar at an intraday high of N1,261 per dollar and a low of N1,200, according to data from NAFEM. The foreign exchange market witnessed a dollar supply of $125.55 million, a 49.43% decline from the $248.27 million recorded on Friday, April 5, 2024.

At the parallel market, the naira appreciated trading at N1,200 per dollar as opposed to the N1,245 traded on Saturday, April 6, 2024.

The development comes as the Central Bank of Nigeria reduced the dollar buying rate for Bureau de Change operators to N1,101 from the N1,251 per it sold FX to them the previous week.

The naira’s gain in the parallel market represents 3.33% compared to the N1,240 per dollar it exchanged last week.

Naira recovers N625 against the dollar Reports say the Nigerian currency has gained 52.08%, about N625, against the US dollar on the black market as per rates collated from street traders.

The external reserves, the natural firepower against the depreciation of the naira, declined following CBN’s intervention to stabilise the local currency.

According to data from the apex bank, Nigeria’s foreign currency holdings declined by 2.95% in the last 10 days to $33.434 billion as of April 4, 2024, compared to $34.449 billion recorded on March 18, 2024.

The naira performs better in the black market

Legit.ng previously reported that the Nigerian currency has continued its upward swing against the US dollar for the fourth consecutive week since its devaluation in January 2024.

The naira appreciated about N245 per dollar in the parallel market against the US greenback, prompting currency dealers to ask the Central Bank of Nigeria (CBN) to review the price at which it sells dollars.

The Association of Bureaux de Change Operators of Nigeria (ABCON) asked the CBN to reduce its buying rate for the US dollar to hasten recovery.