Naira Plummets To N1,309/$1 At Official Market As Forex Market Volatility Persists

The Nigerian Naira witnessed a significant depreciation at the official market, with the exchange rate plummeting to N1,309.39 against the US dollar, according to the latest data from the FMDQ trading platform. This marks a notable 0.69 percent decline from the previous day’s rate of N1,300.43.

Despite the depreciation, trading volume surged dramatically, reaching a total turnover of $857.78 million, more than doubling from Wednesday’s $416.10 million.

In the Investor’s and Exporters’ (I&E) window, the Naira experienced fluctuations, trading within the range of N1,392 and N1,250 against the dollar. This volatility underscores the challenges and uncertainties prevalent in the forex market, attributed to various economic adjustments and policy shifts initiated by the Central Bank of Nigeria (CBN).

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Furthermore, the CBN’s recent announcement of new capital requirements for banks, elevating the minimum capital base for commercial banks with international authorization to N500 billion, adds another layer of transformation to the financial landscape.

Despite the CBN’s directive to individuals to approach their respective banks for forex transactions, the parallel market (black market) continues to operate, with players buying a dollar for N1240 and selling at N1280 as of Friday, 29th March 2024, according to sources at Bureau De Change (BDC).

It’s worth noting that forex rates may vary from those captured in this report due to market dynamics and fluctuations.