Naira closes 1,402/$ at official market as dollar demand persists

The naira traded at a loss at the official market, depreciating to N1,402 against the United States dollar on Thursday.

According to data from the FMDQ exchange securities, the naira dropped by N12 or 0.86 per cent from the N1,390 recorded at the close of trading activity on Tuesday.

There was no trading activity on Wednesday due to the Worker’s Day celebration.

At the Nigerian Autonomous Foreign Exchange Market, the intraday high closed at N1,445 on Thursday weaker than N1,450 on Tuesday. The intraday low also depreciated to N1,299 on Thursday as against  N1,200 on Tuesday.

Dollars supply at NAFEX appreciated by 3.1 per cent or $7m to $232 on Thursday from $225.36m recorded on Tuesday.

The naira had depreciated following a renews demand for the greenback at both the official and parallel market.

Based on data from the FMDQ official trading platform, the naira gained N28.15 on the final trading day of April, settling at N1,390.96/$ as against N1,419/$ on April 29.

The positive trend was also reflected in trading volumes, with a 52.45 per cent surge in forex turnover, reaching $225.36m, up from the prior volume of $147.83m.

However, compared with the beginning of April, the April 30 rate was a 5.8 per cent depreciation from N1,309.39 seen on April 1.

Similarly, Bureau De Change operators said the naira recorded a reduction in value at the parallel market on Thursday.

Abubakar Yahu, a BDC operator in Wuse 2, Abuja, said traders bought the dollar at N1,310 and sold at N1,360 leaving a profit margin of N50.

He said the dollar was rising marginally due to constant demand but not at the same rate when the naira slid to N1,900 two months ago.

He said, “The naira depreciated today. We sell at N1,360 per dollar and we buy from customers at N1,310 depending on how you bargain. But we are expecting that the rate will drop tomorrow. Demand is still coming, it is not like before but it is still high.”

Another currency trader, Ibrahim Isa, in Ikeja, Lagos, confirmed the rate while reiterating that the government must stabilise the naira for a long period.

“The market is moving slightly but it will be better if we can stay on a particular amount and stabilise the economy.”