The exchange rate of the naira against the dollar has crossed the N1,600/$1 mark in the parallel market, reaching N1,630/$1 on several online platforms. Parallel market operators are now quoting a buy price above N1,600/$1 for those looking to purchase dollars as the local currency continues to face significant pressure.
Recent checks by Nairametrics indicate that the exchange rate has been steadily weakening in line with the official market’s ongoing decline. Platforms such as Trove, Remitly, Bamboo, and PiggyVest are all reporting rates above N1,630 as of Thursday, July 18, 2024.
How Each Platform is Selling the Dollar:
- Remitly: N1,632.96/$1
- Trove: N1,632.01/$1
- Bamboo: N1,634/$1
- PiggyVest’s Flex Dollar: N1,660/$1
- ChipperCash: N1,803.04/$1
Official Market Performance:
On Wednesday, the naira traded at a high of N1,620 on the official market, closing at N1,581.26/$1, reflecting a depreciation of 0.32% at the NAFEM window. Additionally, FX turnover plummeted by 21.72%, dropping to $108.16 million, according to data from the FMDQ.
Central Bank’s Stance:
Despite the constant weakening of the naira, the Governor of the Central Bank, Yemi Cardoso, recently claimed that the worst of naira volatility regarding foreign exchange is over. In an interview with Bloomberg TV, Cardoso expressed satisfaction with the management of the currency crisis over the past few months. He noted that the future value of the naira depends on various factors, including fiscal policies, and emphasized that it is a work in progress as macroeconomic fundamentals continue to be implemented.
Measures to Stabilize the Naira:
In a bid to stabilize the naira, the CBN announced the approval of the sale of foreign exchange (FX) to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. According to a circular signed by A. A Mahdi, the Acting Director of Trade and Exchange at the CBN, $20,000 is to be sold to each BDC at the rate of N1,450/$1. It is expected that, similar to previous sales to BDCs, the naira may strengthen amid ongoing pressures, particularly from summer holiday-goers.
The exchange rate of the naira continues to be a pressing issue as it faces persistent depreciation both in the official and parallel markets. While the CBN’s recent measures aim to provide some relief, the currency’s future value remains uncertain, influenced by a variety of economic factors and policies.
