The naira got lower this July. On Friday, July 12, 2024, one dollar was worth N1,563.80. This was after a little rise the day before.
As per FMDQ, the naira lost value by 0.59%. On Thursday, the rate was N1,554.65 for one dollar.
This happened after Nigeria’s Central Bank (CBN) sold $122.67 million to 46 dealers over two days.
On Friday, the naira traded between N1,496.46 and N1,586 for one dollar. It was getting close to N1,600.
Cash Problems After CBN’s Dollar Sales
This week, the amount of foreign money traded dropped by 63.73% on Friday.
On Monday, foreign exchange (FX) turnover went up by 14.19% to $133.46 million.
On Tuesday, it increased by 41.01% to $188.19 million. On Wednesday, it went up by 25.78% to $236.7 million.
On Thursday, FX turnover peaked at $348.82 million with a 47.37% rise.
This peak matched the time when the CBN sold dollars on Wednesday and Thursday.
Dr. Omolara Duke from CBN said they sold $67.5 million to 27 dealers and bought $2.5 million from one dealer on Wednesday.
These deals were between N1,480 and N1,500 for one dollar. Payments were set for July 12, 2024, two days later.
On Thursday, CBN sold $55.17 million to 19 dealers at N1,540 for one dollar. No dollars were bought that day. Payments for these sales were due on July 15, 2024.
CBN asked dealers to use the purchased dollars only for trade-backed deals and report within 72 hours.
But, despite CBN’s effort, the market dipped to $126.5 million—lowest this week.
Key Points
In May, the naira got better on the official market. The CBN sold more dollars, expecting a $1.3 billion deal due on May 29, 2024.
Sources told Newslodge that the CBN tried lowering the exchange rate by selling dollars cheaper than the market.
On Thursday, the naira stopped a three-day fall and closed at N1,554.65 for one dollar.
But, the naira fell again to a new low in July.
Newslodge had said the naira might weaken as summer holidays start. Many Nigerians travel then.
This week, the naira kept falling, even though the Central Bank’s Governor, Yemi Cardoso, said the worst of the naira’s problems was over.