Naira Weakens in Black Market, Stabilizes Officially

Naira weakens at the black market however somewhat strengthens at the official window.

On Monday, June 4, the naira lost value in the parallel segment of the foreign currency market, reaching N1,510 per dollar. This is due to the fact that the current exchange rate is 1.34 percent lower than the N1,490 per dollar it was trading at on Friday, May 31.

The purchase rate of US money was offered by currency dealers, often referred to as Bureau De Change, or BDC, operators, at N1,490, and the selling price at N1,510, leaving a profit margin of N20.

However, the naira strengthened at the official window on the same Monday, May 31, trading at N1,485.99 to the dollar, a 0.66 percent increase.

Regulatory oversight of formal foreign exchange transactions is provided by the FMDQ Securities Exchange.

The dollar swapped for as much as N1,500 and as little as N1,250 during trading hours, according to the FMDQ Securities Exchange, a platform that regulates the official foreign exchange trading in Nigeria.

The foreign exchange market saw a $121.87 million daily turnover.

On Saturday, June 2, the International Air Transport Association, or IATA, said that 98% of the monies held by Nigerian airlines that were stuck had been released.

Willie Walsh, the director-general of IATA, stated that the Central Bank of Nigeria, or CBN, still needs to clear the remaining $19 million.

“We are on the right path and urge the government to clear the residual $19 million and continue prioritizing aviation,” he said.

Walsh commended the CBN and the present Nigerian government for their attempts to address the problem.