Tag Archives: Depreciates

Naira Depreciates To N365.25/$

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Naira, yesterday, suffered its most steep depreciation in the inter-bank market since the new foreign exchange market commenced, trading at N365.25 per dollar against N314.14, almost 14 per cent drop in one day.

Parallel market rate hovered around N395/ USD1, indicating that the huge gap is now narrowing. The steepest single day depreciation before yesterday was recorded shortly after the dropping of Central Bank of Nigeria’s remote rate control which spiked the exchange rate from N281.8 to about N305.5 last month, just 8.4 percent depreciation.

Earlier this month also, another sharp depreciation was recorded when the rate hit N332.1/$1 from N315.4/ $1, which translated to just about 5.02 percent depreciation.

Traders attributed yesterday’s development to a sustained discomfort with continued scarcity of foreign exchange supply from independent sources, a situation which had forced the apex bank to continue its intervention almost on a daily basis since this month.

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Naira Depreciates To N270/Dollar In Parallel Market

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The Naira Wednesday depreciated further to N270 per dollar at the parallel market, following reduction of dollar sales to bureaux de change (BDCs) by the Central Bank of Nigeria (CBN).

Investigation revealed that from N260 per dollar at the close of business on Tuesday, the parallel market exchange rate rose sharply to N270 per dollar in Lagos, indicating N10 depreciation.

But in Abuja, the parallel market exchange rate rose from N262 per dollar to close at N273 per dollar, indicating N11 depreciation.

BDC operators, who confirmed this development, said that the sharp depreciation was due to further reduction in the weekly dollar sales by the CBN.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said that though the CBN increase the number of BDCs it sold dollars to from 1,170 last week to 2,270 this week, it however reduced the amount of dollars sold to each BDC by 60 percent from $30,000 to $10,000.

According to Mr. Harrison Owoh, Chief Executive Officer, H.J Trust BDC, the decision of the CBN aggravated the demand situation in the market.

“There is huge volume of unsatisfied demand in the market. We had to turn down lots of request for dollars because of there is no dollars to sell to them”, he said.

An Abuja based BDC operator, who spoke on condition of anonymity said, “The dollar is selling at N273 in Abuja this evening. It was N262 in the morning. We are surprised at the pace of depreciation, because we can’t explain why it just went up by such margin in one day”.

Credit: Vanguard

Naira Depreciates Against Major Currencies

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The Naira on Friday at the parallel market depreciated against three international currencies at the close of trading for the week. A on Friday in Lagos showed that the Naira depreciated by N1 or 0.45 per cent against the dollar due to high demand. It sold for N221 against the dollar from the N220 it sold on Monday, June 15.

The Naira also lost N27 to sell at N352 to the pound, representing 8.31 per cent depreciation from the N325 it traded on June 15.Besides, the Naira against the euro went for N245 compared with the N238 it sold on June 15, representing N7 or 2.97 per cent drop. The Naira against the dollar at Central Bank of Nigeria (CBN) official rate remained at N196.90, the rate since June 11.

But it fell by N7.96 or 2.61 per cent to the pound, selling for N313.31 from the N305.31 it sold on June 15. The currency also depreciated against the euro to sell for N224.58 compared with the N220.74 it traded on Monday.

A bureau de change operator, Mr Harrison Owoh said that the depreciation in all segments was due to a shortfall between demand and the foreign exchange available for sale. Owoh, who is the Managing Director of HJ Trust Investment Ltd., Lagos, said that a further shortfall in forex supply may lead to further depreciation.

Credit: Vanguard