Nigeria: Naira Gains At Official Market

The unit remained stable at the parallel market.

The Naira gained marginally against the U.S. dollar at the I&E window of the foreign exchange market on Wednesday, as foreign exchange supply decreased.

Data posted on the FMDQ Security Exchange where forex is officially traded showed that the domestic unit closed at N410.00 at the trading session of the NAFEX window.

Wednesday's performance represents 0.16 per cent appreciation from N410.67 it traded in the previous session on Tuesday.

The last time the currency touched N410.00 and above was on April 19.

The naira experienced an intraday high of N394.00 and a low of N422.00 before closing at N410.00 on Wednesday.

This occurred as forex turnover plummeted by 59.66 per cent, with $40.13 million recorded as against the $99.49 million posted in the previous session on Tuesday.

However, the naira remained stable against the U.S. dollar at the unofficial market on Wednesday, data posted on abokiFX.com, a website that collates parallel market rates in Lagos showed.

The data posted showed that the naira closed at N486.00 at the black market, the same rate it exchanged hands with the greenback in the previous session on Tuesday.

By the aforementioned status of the forex markets, the spread between the parallel market and the official market exchange rate is pegged at N76.00 which translates to a gap of 15.64 per cent.

This came to be as the <a target="_blank" href="https://www.premiumtimesng.com/business/456654-cbn-warns-banks-bdcs-against-rejecting-old-lower-dollar-bills.html">Central Bank of Nigeria (CBN)</a> on Tuesday threatened to sanction deposit money banks and authorised bureau de change operators who reject old and lower denomination of the United States dollar bills.

The apex bank in a circular signed by its director, currency operations department, Ahmed Umar, directed all DMOs, BDC and the general public to accept both old series and lower denominations of USD that are legal tender.

It said "All OMBs/authorized forex dealers should henceforth accept both old series and lower denominations of United States Dollars (USD) that are legal tender for deposit from their customers,"

"The CBN will not hesitate to sanction any DMB or other authorized forex dealers who refuse to accept old series/lower denominations of US Dollar from their customers," the <a target="_blank" href="https://www.cbn.gov.ng/">CBN</a> said.

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