Naira Holds Steady on Black Market at ₦1,495

The Nigerian naira maintained its stability on Thursday, exchanging at N1,495 against the dollar on the parallel market, also known as the black market.

This steady rate represents a marginal change of 0.33 percent compared to the previous day’s exchange rate of N1,490. The data, sourced from online trading platforms and street traders, indicates a consistent performance in the currency market.

Meanwhile, at Broad Street Lagos, the dollar was observed selling at N1,475. This attracted a considerable crowd around some banks, reflecting the ongoing demand for the greenback.

Despite an increase of 1.45 percent in foreign currency reserves within a month, the naira witnessed a slight depreciation in its value for the second consecutive trading day.

Recent data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), provided by the FMDQ Securities Exchange Limited, revealed a 0.78 percent loss in the naira’s value. The dollar was quoted at N1,488.60 after Wednesday’s trading session, weaker than the previous day’s rate of N1,476.95.

In line with these developments, the naira closed at N1,476.95 on Tuesday, marking a minimal decrease of 0.06 percent compared to Monday’s rate of N1,476.12.

Despite the increase in Nigeria’s external reserves to $32.77 billion as of June 4, 2024, from $32.30 billion in May 3, 2024, the naira’s depreciation persists due to heightened demand for dollars amid supply shortages.

The supply of dollars, facilitated by willing sellers and buyers including commercial banks, witnessed a decline of 13.32 percent on Wednesday, dropping to $205.43 million from $236.99 million recorded on Tuesday.

The FX market summary by the FMDQ revealed that the intraday high closed at N1,520 on Wednesday, slightly weaker than the previous two trading days’ rates. Conversely, the intraday low weakened to N1,363.85 on Wednesday, compared to N1,362.15 on Tuesday.