The naira traded slightly lower in the official foreign exchange market on Thursday, June 13, 2024, at N1,476.24 per dollar, compared to the N1,473.66 it traded on Tuesday, June 11, 2024.
According to data from the FMDQ Exchange, traders quoted the naira at a high of N1,500 per dollar and a low of N1,400.
Also, Forex turnover in the official market plunged to $92.68 million from the massive $385.69 million recorded the day before.
The Nigerian currency also suffered in the parallel market, where traders sold the US greenback at N1,490 per dollar.
Bureau de Change (BDC) operators quoted the dollar’s buying rate at N1,480, leaving a margin of N10.
Experts believe the drop in dollar supply in the FX market is responsible for the naira crash.
The Nigerian currency has traded above the N1,400 threshold for the last three weeks as the dollar supply plummeted.
The BDC operators have lamented the scarcity of forex, blaming the Central Bank of Nigeria (CBN) for halting their forex sales.
In April, the apex bank resumed intervention in the FX market, selling weekly forex to BDC operators, leading to the naira emerging as the world’s best-performing currency.
The naira’s fortune reversed almost a week later when supply dipped due to a drop in the country’s FX reserves.
Legit.n earlier reported that the naira stabilised against the US dollar in the foreign exchange market on Tuesday, June 11, 2024, following a surge in Forex turnover at 138.67% in NAFEM.
The naira’s value rose by 0.68% to N1,473.66 per dollar, up from N1.483.62 on Monday, June 10, 2024.
The slight increase in the naira’s value shows some respite in the exchange rate, reassuring market participants of the resilience of the Nigerian currency.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
