Naira trades N1,566/$ at official market

The naira, on Thursday, July 18, 2024, appreciated at the official market, trading at N1,566.82 to the dollar.

Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira gained N14.83.

This represents a 0.937 per cent gain when compared to the previous trading date on Wednesday, July 17, when it exchanged at N1,581.65 to a dollar.

However, the total daily turnover increased to $273.14 million on Thursday, up from $108.16 million recorded on Wednesday.

Meanwhile, at the Investors and Exporters (I&E) window, the naira traded between N1,650.00 and N1,500.00 against the dollar.

The Central Bank of Nigeria (CBN), on Thursday, directed Bureau De Change (BDC) operators to sell forex at a maximum profit margin of 1.5 per cent, aiming to correct market distortions.

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The CBN said the directive was to normalise the foreign exchange market through ongoing reforms.

The apex bank, in a circular to BDC operators and the public, noted that persistent distortions in the retail market were contributing to disparities in exchange rates, particularly in the parallel market.

“To address this issue, the CBN has authorised the sale of FX to eligible Bureau De Change (BDCs) to satisfy demands for invisible transactions,” it stated.

Under the directive, each BDC is authorised to purchase $20,000 at a rate of N1,450 per dollar reflecting the lower band of the trading rate observed in the previous session at NAFEM.

“All BDCs are permitted to sell to eligible end-users at a profit margin not exceeding one point five per cent (1.5 per cent) above the CBN purchase rate,” the CBN added.

The apex bank also instructed eligible BDCs to remit naira payments to specified CBN Naira Deposit Account Numbers and submit payment confirmations alongside required documentation for disbursement at designated CBN branches in Abuja, Awka, Kano, and Lagos.

The Star