Naira further tumbled against the dollar on Thursday, January 25th, 2024, in both the official and black markets.
The domestic currency depreciated 2.12% to close at N900.96 to a dollar at the close of business, based on data from NAFEM where forex is officially traded.
- This represents an N18.72 loss or a 2.12% decrease in the local currency compared to the N882.24 it closed on the previous day.
- The intraday high recorded was N1399/$1, while the intraday low was N789/$1, representing a wide spread of N610/$1.
- According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $115.19 million, representing a 103.52% increase compared to the previous day.
Nairametrics reported that naira on Thursday fell to a record low of N1,410 per dollar following strong demand on the parallel market, also known as the black market.
This represents 3.29% or N45.00 weaker than N1,365 recorded at the close of trading on Wednesday.
The observed depreciation is unparalleled and stands as the lowest point in the historical performance of the Naira, reflecting the severity of the current economic challenges.
What you should know
Nairametrics also reported recently that more than two years after the ban on AbokiFX for publishing parallel market exchange rates online, efforts are underway to authorize the Association of Bureau De Change Operators of Nigeria (ABCON) to publicly display the black-market rates of the naira against the dollar on online platforms.
The ABCON President, Aminu Gwadabe speaking to Nairametrics noted that the association was proposing to regulators to allow BDCs to restart the public display of exchange rates.
He also noted that as part of the proposal, ABCON is upgrading the functionality of their existing website to compete with other platforms in the economy.
This move is expected to be another in a long line of departures from the measures implemented by the former central bank leadership, which sought to stringently regulate BDC operations and reduce the prominence of the unofficial market.
In September 2021, the Central Bank of Nigeria went after AbokiFX, a platform that publishes black market exchange rates for the Naira online.
The apex bank levied allegations against the platform, noting that they were involved in “illegal activities that undermine the economy.“
At the time, then-CBN Governor, Godwin Emefiele this about the owner of AbokiFX, Oniwinde Adedotun,
- “Mr Oniwinde is an illegal FX dealer that has inflow and sold tens of millions of FX to several Nigerian companies in contravention of the FX law, he directly benefits from the rates he quotes daily on his website.”
- As AbokiFX stopped aggregating the black-market rates, Naijabdcs.com the online platform owned by ABCON also stopped publishing the rates online.
- Speaking to Bloomberg at the time, ABCON’s President Aminu Gwadabe noted “The central bank has outlawed the publication of any parallel market rates,”
- Emefiele confirmed Gwadabe’s statement, noting to journalists in 2021, “I am sorry to say that I do not, and I do not intend to recognise any FX in the market.”
