The naira experienced a sharp decline against the U.S. dollar at both the official and parallel markets, marking a reversal from the temporary gain observed last week.
At the official market, the naira depreciated by 0.55% to close at N874.71 to a dollar, representing a 0.55% decline compared to the previous day’s close at N869.91.
The intraday high recorded was N1,097.50/$1, while the intraday low was N745.00/$1, indicating a significant spread of N352.50/$1.
Forex turnover at the official NAFEM window increased by 60.1%, reaching $223.52 million.
In the parallel forex market, the naira also weakened, with the exchange rate quoted at N1,130/$1, while peer-to-peer traders quoted around N1,110.10/$1.
The Association of Bureau de Change Operators of Nigeria (ABCON) warned speculators to be cautious, as the Central Bank of Nigeria (CBN) was implementing measures to curb currency speculation.
ABCON’s President, Aminu Gwadabe, emphasized that the CBN’s actions, including dollar liquidity injection and naira mopping through interest rate hikes, were aimed at curbing speculation and promoting naira stability.
The CBN had previously taken steps to clear the forex demand backlog in banks, leading to a temporary rebound in the naira’s value.
ABCON called on the CBN to continue providing clarifications and implementing recommendations to involve Bureau de Change operators in the foreign exchange market, as they play a crucial role in meeting the retail sector’s needs and ensuring exchange rate stability.
