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Naira Depreciates Against Dollar In Parallel Market—-The Nigerian Naira experienced mixed performance yesterday, with a depreciation in the parallel market while showing strength in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In the parallel market, the Naira weakened to N1,635 per dollar, down from N1,625 per dollar over the weekend. This depreciation reflects ongoing pressures on the local currency amid economic challenges.

Conversely, the Naira appreciated in the NAFEM, closing at N1,585.77 per dollar, a significant improvement from the N1,598.56 per dollar rate recorded last weekend.

This represents an appreciation of N12.79 for the Naira, showcasing a positive shift in the official exchange market.

According to data from FMDQ, the indicative exchange rate for NAFEM saw this improvement despite a notable decrease in trading volume.

The turnover in the market dropped by 58.8 percent, with only $71.18 million traded, compared to $172.8 million on the previous Friday.

As a result of these changes, the disparity between the parallel market rate and the NAFEM rate widened. The margin increased to N49.23 per dollar, up from N26.44 per dollar last weekend, highlighting the ongoing divergence between the two exchange rates.

This fluctuation in the exchange rates continues to be a topic of concern for businesses and individuals alike, as the wide margin between the parallel and official markets suggests underlying economic uncertainties and liquidity issues in the foreign exchange market.

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Again, CBN Speaks On Deadline For Old ₦200, ₦500, And ₦1,000 Naira Notes

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Naira Notes

Again, CBN Speaks On Deadline For Old ₦200, ₦500, And ₦1,000 Naira Notes—-The Central Bank of Nigeria (CBN) has officially refuted rumours suggesting that old Naira notes will cease to be legal tender by December 31, 2024.

In a decisive statement issued by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the CBN declared these claims baseless and misleading, designed to disrupt the nation’s payment systems.

Amidst circulating rumours about the discontinuation of old denominations of ₦200, ₦500, and ₦1,000 banknotes, the CBN has clarified that there is no deadline set for phasing out these notes.

The announcement comes as a relief to many who had been concerned about the potential invalidity of their cash holdings.

“The order of the Supreme Court on November 29, 2023, which extends the use of old banknotes indefinitely, remains in force,” the CBN’s statement emphasized.

This directive ensures that both old and redesigned versions of the Naira will continue to coexist as legal tender across Nigeria.

Mrs. Ali also instructed all CBN branches to keep issuing and accepting both the old and the newly designed Naira notes, reassuring the public of the banknotes’ validity.

She encouraged Nigerians to dismiss any rumours about deadlines for old notes and to remain informed through official CBN communications.

CBN’s stand comes after the House of Representatives asked the apex bank to withdraw old currency notes and increase the issuance of new naira notes.

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Naira Appreciates Against Dollar In Parallel Market

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Naira

Naira Appreciates Against Dollar In Parallel Market—-The Nigerian Naira saw mixed fortunes in the foreign exchange markets yesterday, appreciating in the parallel market but experiencing depreciation in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In the parallel market, the Naira appreciated to N1,715 per dollar, up from N1,725 per dollar recorded last weekend, reflecting a slight gain for the local currency.

However, in the NAFEM, the Naira depreciated to N1,603.16 per dollar from N1,600.78 per dollar last Friday, marking a N2.38 decline. Data from FMDQ showed this drop as indicative of the pressure on the official exchange rate.

On a positive note, dollar trading volume in the official market grew by 2.4%, with $359.22 million traded, up from $350.72 million last weekend.

As a result of these market shifts, the gap between the parallel market and NAFEM rates narrowed to N111.84 per dollar from N124.22 per dollar recorded last Friday. The exchange rate dynamics continue to reflect market volatility amid ongoing economic adjustments.

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