Drama as naira trades lower at black market than official window, N1,450/$1 to N1,609/$1

In a dramatic showing, the naira traded at a lower exchange rate at the parallel (black market window than the official window on Wednesday, February 28, 2024.

While the naira rebounded slightly to ₦1,609.51/$1 according to data from the Nigerian Autonomous Foreign Exchange Market, NAFEM (Official Window), it traded at a much lower rate of N1,450/$1 at the black-market window.

This represents a difference of N159.

It would be recalled that the Central Bank of Nigeria (CBN), Tuesday resumed the sale of Forex to Bureau De Change (BDC) operators saying each BDC will be eligible to buy $20,000 weekly from the apex bank at a rate of N1,301/$1.

However, the BDCs in turn are allowed to sell to end-users at a margin not more than one percent above the purchase rate from CBN, a development which could be responsible for the low rate at the parallel market rate while it still remains high on the official window.

READ ALSO:Naira slumps again to ₦1,615/$1 at official market, N1,610\$1 at parallel window

Meanwhile, the spread between the intraday high and low at the official window is also narrowing as the intraday high recorded was N1,660/$1, while the intraday low was N1,401/$1, representing a lean spread of N259/$1.

However, the naira continued its appreciation against the British Pound to trade at N1,800/£1 as against the previous trading day’s price of N1,950/£1. This represents a further appreciation of N150.

The naira closed flat against the Canadian dollar to trade at N1,150/CA$1, same as the previous trading day’s rate.

The Euro slumped slightly against the naira to trade at ₦1,700/€1 as against the previous closing price of ₦1,740/€1 on Tuesday, February 27, 2024 representing a gain of N40 for the naira.

By: Babajide Okeowo

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