Naira reverses gains, drops N841.14/$1 at official market

The naira fell against the U.S. dollar at the official but gained marginally at the parallel market after the local currency recorded a gain against the dollar in the official market the previous day.

The exchange rate between the naira and dollar fell to N841.14/$1 on Thursday at the official market.

This represents an N22.15 loss or a 2.63% decline in the local currency compared to the N818.99 it recorded on Wednesday

The intraday high recorded was N1140/$1, while the intraday low was N600/$1, representing a wide spread of N540/$1.

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $127.65 million, representing a 26.43% decrease compared to the previous day.

However, the naira gained marginally at the parallel forex market where forex is sold unofficially, the exchange rate depreciated by 0.26%, quoted at N1137/$1, while peer-to-peer traders quoted around N1129.20/$1.

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Amid the rising free fall of the Naira both at the official Nigerian Foreign Exchange Market (NAFEM) and the unofficial market, financial experts had called on the Central Bank of Nigeria (CBN), to de-dollarize the economy by declaring any local transactions in US dollars illegal.

Speaking on strategies that can be used for the naira to regain strength, the founder and chief consultant of B. Adedipe Associates Limited (BAA Consult), Dr. Biodun Adedipe, said the CBN should stop government agencies from charging local operators and entities in US dollars.

According to him, the sale of crude oil to local refineries should also be made in Naira rather than in US dollars.

Adedipe said: “CBN should deal transparently with participating banks at the I&E Window. De-dollarize the economy by declaring as illegal any local transactions in US dollars (sale of assets, rent/leases, and other services, including school fees and medical bills) and ensure that government agencies stop charging local operators and entities in US dollars (quite common in the maritime sector).

“Other suggestions include the need to ensure that the sale of crude oil to local refineries should be made in Naira rather than dollars. “

“President Bola Tinubu should have a direct engagement with bank CEOs to generate ideas and use moral suasion to enlist their support for the market reforms. Face the reality that unified exchange rates (not any different than floating the Naira) is a poor policy choice for a structurally defective and weak economy like ours,” he added.