Naira ends five-day depreciation streak at parallel market, now N1,510/$

The naira ended a five-day depreciation streak on Monday at the parallel section of the foreign exchange (FX) market.

Nigeria’s local currency appreciated by 0.98 percent or N15 to N1,510/$ — from the N1,525/$ recorded on June 28.

Currency traders, also known as bureau de change (BDC) operators, quoted the buying rate at N1,480 per dollar and the selling rate at N1,510/$ — leaving a profit margin of N30.

At the official window, the naira declined to N1,508.99 per dollar on Monday.

The rate represents a 0.24 percent depreciation from the N1,505.30/S traded on June 28. 

According to data from the FMDQ Securities Exchange — a platform that oversees FX trading in Nigeria — the local currency hit an intra-day high of N1,536 per dollar and a low of N1,441/$. 

FIVE-DAY DEPRECIATION STREAK 

The naira recorded a depreciation streak from June 24 to June 28 at the parallel section of the foreign exchange (FX) market.

Aliyu, a BDC operator, who spoke to TheCable, said the margins were not too wide.

“Throughout the week, the naira fell but the gap between the days was not too wide,” Aliyu said.

According to the currency traders in the parallel market, the naira dropped by 0.33 percent to N1,500/$ on June 24 — from N1,495/$ traded on June 21.

The loss was maintained, with the local currency trading at N1,505/$ on June 25, N1,510/$ on June 26, N1520/$ on June 27, and N1,525/$ on June 28.

Throughout last month, the naira traded as high as N1,485 per dollar and as low as N1,525/$ in the parallel market.

Similarly, the naira depreciated in the official window, depreciating from June 24 to June 27 before recovering on June 28.

Data obtained from FMDQ Exchange showed that on June 24, the naira depreciated by 0.31 percent to N1,490.20 per dollar — from N1,485.53/$ on June 21.

The depreciation continued, with the local currency depreciating against the greenback to N1,500.79, N1507.83, and N1,510.10, on June 25, 26, and 27, respectively. 

On June 28, the naira rebounded to N1,505.30/$.

Also, the local currency depreciated to a low of N1,510/$ and recorded a high of N1,476/$ at the official market in June.

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), on June 25, said the apex bank is “relatively pleased” with the progress it has made in stabilising the naira.

Speaking in an interview with Bloomberg TV, Cardoso said he believes the excessive volatility may be a thing of the past.

“We are also very alive to observing the way and manner in which that market operates and ensuring that it gives the best value that can be accomplished using certain tools,” he said. 

 Cardoso also said reviving confidence in the naira is crucial for Nigeria to attract investors.