Naira falls 1.02% after closing steady for 7days at official market

Nigeria’s currency on Thursday depreciated by 1.02 percent (N4.83/$1) at the Investors and Exporters (I&E) forex window, Nigeria’s official foreign exchange (FX) market.

After trading on Thursday the dollar was quoted at N469.50 compared to N464.67 quoted since May 31, 2023, I&E window, data from the FMDQ indicated.

The local currency further weakened against the dollar on Thursday, losing 0.39 percent (N3) at the parallel market, also known as black market.

During the trading session on Thursday the dollar was quoted at the rate of N763 as against N760 on Wednesday.

The naira depreciation followed strong demand for dollars by individuals for travel allowances and school fees.

Naira has since last week steadied at N464.67 per dollar at the Investors and Exporters forex window despite a decline in the market liquidity on Wednesday.

Most currency traders who participated at the foreign exchange auction on Wednesday maintained bids between N460/$1, lower and N467/$1, higher bid.

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The daily foreign exchange market liquidity declined by 24.57 percent to $140.31 million on Wednesday from $186.02 million recorded on Tuesday, data from the FMDQ indicated.

President Bola Ahmed Tinubu had in his inaugural speech on May 29, 2023 signalled plans for a single exchange rate. He said monetary policy needs thorough house cleaning and that the Central Bank must work towards a unified exchange rate.

This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.

“The naira volatility has underpinned our slow economic growth and fuelled an inefficient informal market,” Aminu Gwadabe, national president, Association of Bureau De Change Operators of Nigeria (ABCON).

Multiple exchange rates he said are ground and encourage illegal economic behaviour for rent seeking, currency substitution and hoarding, adding that the lack of unified exchange rates has acute shortages in the retail end sector of the market where the spikes and volatility is most pervasive.

“We as licensed retail exchange Business believe the unification will lead to a true market price discovery and enhance liquidity in our sub sector.

“To this end we advise the new president to embrace securitization of diaspora remittances by leveraging on the BDCs sub-sector as the most potent and effective transmission mechanisms of monetary policies in the retail end sector of the market,” Gwadabe said.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.