Naira trades at N1,620/$ as depreciation enters fifth day in parallel market

On Thursday, the naira continued its five-day depreciation streak, trading at N1,620 in the parallel section of the foreign exchange (FX) market. This marks a 0.3 percent drop from the N1,615 per dollar rate recorded on July 17.

Currency traders, commonly known as bureau de change (BDC) operators, listed the naira’s buying rate at N1,600 and the selling rate at N1,620, yielding a N20 profit margin.

According to the FMDQ Exchange, which monitors official FX trading in Nigeria, the naira appreciated to N1,566.82 per dollar on Thursday, a 0.94 percent improvement from the N1,581.65 traded the previous day. The local currency traded at a high of N1,620 and a low of N1,500.

### A Five-Day Loss Streak

On July 11, the naira appreciated in the black market to N1,530/$, up from N1,550 on July 10. However, this gain was short-lived as the naira depreciated to N1,545 on July 12 and further to N1,555 on July 15. The decline continued with the naira trading at N1,585 on July 16 and N1,615 on July 17.

In the official market, the naira experienced marginal fluctuations. Data from the FMDQ Exchange indicated that the naira appreciated to N1,554.65 on July 11, up from N1,561 on July 10. It then fell to N1,563.80 on July 12, further declined to N1,577.29 on July 15, before recovering slightly to N1,576.66 on July 16. On July 17, the naira again fell to N1,581.65 against the dollar.

On July 15, the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) called for the stabilization of the naira’s value, citing that the recent fluctuations have made it challenging for companies to plan and invest. They noted that this instability is a major factor driving multinational companies out of the country, rather than the fear of subsidy removal. The association emphasized that fixing the FX rate would help reset the manufacturing industry.

To address market volatility, the Central Bank of Nigeria (CBN) announced on July 13 that it had sold foreign currencies worth $122.67 million to 46 authorized dealers over two days. Furthermore, on July 18, the CBN approved the sale of FX to eligible BDC operators at N1,450 per dollar to meet the demand for invisible transactions.

 

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