The Nigerian currency, the naira, lost more than N100 against the US dollar in the official market amid slowing inflation in the country, marking the second-month inflation will ease.
Information from the Nigerian Autonomous Foreign Exchange Market (NAFEM) shows that the naira sold at N1,656 per dollar on Tuesday, September 17, 2024, higher than the N1,546 it traded on Monday, September 16, 2024.
FMDQ Exchange data shows that the currency dealers quoted the naira at a high of N1,665 and a low of N1,565 per dollar.
The foreign exchange market’s turnover declined to $100.39 million on Tuesday, September 17, 2024.
In the parallel segment of the foreign exchange market, the naira rose to trade at N1,660 per dollar, up from the previous rate of N1,665.
The development comes as the National Bureau of Statistics (NBS) disclosed that Nigeriaâs headline inflation dipped by 1.25% to 32.15%, down from 33.40% in July.
Food inflation declined, reaching 37.52% compared to 39.53% in July 2024.
The Central Bank of Nigeria (CBN) issued a new policy guideline, restricting the Bureau de Change (BDC) operatorsâ single exchange cash sales to $5,000.
The apex bank said the policy in the Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for 2024/2025 aims to regulate cash sales in the FX market to ensure stability and compliance.
BDCs compete with similar businesses and profit by buying foreign exchange and then selling the same currency at a higher FX rate.
Punch reports that CBN said BDC operators should continue to observe a maximum FX cash sales limit of $5,000 per transaction.
Economist and senior banker Janet Ogochukwu of one of the tier-1 banks disclosed that the measure may prove counterproductive, considering the volatile FX rate.
She said the only way the naira can stabilise is if there is enough liquidity in the system.
TimesNow.com.ng earlier reported that the Nigerian currency, the naira, appreciated in the official FX market against the United States dollar in the official market.
According to data from FMDQ Securities, the naira closed at N1,558.75/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, September 13, 2024.
This represents an N91 appreciation compared to the N1,649.76/$1 previous day’s exchange rate.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
