Naira Declines As Banks Offload Foreign Exchange For 24 Hours

The Naira depreciated by 0.43% against the US Dollar in the Nigeria autonomous window, closing at a rate of ₦1461.90 as foreign currency scarcity persists.

The Naira depreciated by 0.43% against the US Dollar in the Nigeria autonomous window, closing at a rate of #1461.90 as foreign currency scarcity persists. There is a signal that deposit money banks 24 hours FX sales requested by the apex bank failed to upturn FX scarcity at the official window.

The apex bank released new guidelines, and local deposit money banks were asked to sell their excess foreign currency assets. According to MarketForces Africa, the request is not very feasible, according to certain analysts and insiders in local banks.

According to reports, certain banks keep their foreign exchange assets in non-liquid forms. It might take some time for deposit money banks to turn these into cash.

Negative foreign exchange tactics to increase profits have been charged against banks. According to information obtained by MarketForces Africa, certain regional lenders are already in talks to extend the deadline for adhering to a cap on foreign exchange asset holdings.

Read: Naira Rebounds As Banks Offload Excess Dollars

Following the elimination of FX speculative options, the Bureau De Change (BDCs) operators have also suspended FX sales in response to the Central Bank's recent FX reforms. Banks Take on Risks Every Day Sell Down FX Positions

The naira closed at N1,461.90 per dollar, down from N1,455.59 to the US dollar, staying steady at N1,400. Likewise, the Naira closed at N1,410 against the dollar on the parallel market.

WTI crude futures increased by 1.18% to $76.74 per barrel on Thursday in the global commodities market. The closing price of Brent Crude was also higher, at $81.46 per barrel. #NairaSkids in a day. FX Offload by Banks: A Letdown.