Banks Dollar Sale Falls As Naira Weakens To ₦1,479/$

The Nigerian Autonomous Foreign Exchange Market (NAFEM) experienced a sharp decline in forex transactions, with the total value falling from $465.29 million on Tuesday to $203.93 million on Wednesday—a 56 percent drop, as reported by the FMDQ Exchange.

This significant decrease interrupts a previously observed steady increase in the value of forex transactions on the platform, spurred by a series of directives from the Central Bank of Nigeria (CBN) aimed at enhancing market liquidity.

In efforts to stabilize the forex market, the CBN recently issued circulars mandating banks to offload their excess dollar reserves and enforce accurate and transparent reporting of forex trading data.

Despite these measures, the naira witnessed a 1.4 percent depreciation against the dollar at the parallel market on Thursday, driven by robust demand for the US currency.

Exchange rates at the blackmarket showed the naira trading at ₦1,480 to a dollar, marking a N20 drop from Wednesday’s rate of ₦1,460 per dollar.

Bureau De Change (BDC) operators have observed a consistent rise in the exchange rate throughout the week, attributing the uptick to persistent demand for the dollar.

Abdulahi Taura, a BDC operator who spoke with Punch noted, “The dollar has increased to ₦1,480. People are still demanding it and that’s why it’s increasing.”

Similarly, another operator, Ibrahim Yahu, reported a closing rate of ₦1,482 to the dollar on Thursday, emphasizing the continuous demand for the US currency as a key factor driving up rates.

The weakening of the naira was also evident in the official forex market, where it closed at ₦1,479.47 to a dollar, a decline from Wednesday’s rate of ₦1,434.53, according to data from FMDQ Exchange.