Intra-Day High Trade Continues Above N1500/$1 For 7th Straight Day

Intra-day high trade has continued above N1500/$1 for the 7th straight day.

 

NewsOnline Nigeria reports that the intra-day high between the naira and dollar sold for N1,519/$1 on Wednesday as forex turnover dropped by 20.26% to $465.29 as the Nigerian naira dropped against the dollar marginally on Wednesday, February 7th, 2024, in the official market.  

 

This Nigeria news platform understands that despite the drop at the close of trading today, the forex turnover has been on the rise in recent times following the Central Bank of Nigeria’s (CBN) recent release of a new circular to address suspected cases of excessive foreign currency speculation and hoarding from Nigerian banks. 

 

ALSO: CBN Announces Plan To Set Up Central Gateway Bank For Correspondent Banking

 

The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices. 

 

The circular, titled “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,” highlights the CBN’s concerns over the growing trend of banks holding large foreign currency positions. 

 

Meanwhile, the domestic currency depreciated 0.98% to close at N1433.89 to a dollar at the close of business, based on data from NAFEM where forex is officially traded.  

 

This represents an N14.03 loss or a 0.98% decrease in the local currency compared to the N1419.86 it closed at on the previous day.  

 

The intraday high recorded was N1,519.78/$1, while the intraday low was N894.99/$1, representing a wide spread of N624.79/$1.  

 

This is the 6th straight day that the exchange rate intra-day high has remained at above N1,500/$1. 

 

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $465.29 million, representing a 20.26% decrease compared to the previous day.  

 

However, the naira appreciated marginally at the parallel forex market where forex is sold unofficially, the exchange rate quoted at N1450/$1, representing a 0.34% increase over what it closed the previous day, while peer-to-peer traders quoted around N1487.50/$1.