Exchange rate crosses N1,600/$1 at parallel market, hits N1,630/$1 on online platfor

Parallel market operators are quoting a buy price above N1,600/$1 for holders of naira looking to buy dollars, as the local currency faces rising pressure.

Platforms such as Trove, Remitly, Bamboo, and PiggyVest are selling the dollar above N1,630 as of Thursday, July 18, 2024.

On Remitly, a remittance platform, the exchange rate is N1,632.96/$1. For Trove, an investing platform, the rate is N1,632.01/$. Another investing platform, Bamboo, offers a rate of N1,634/$1.

The rate is higher for those saving in dollars on PiggyVest’s Flex Dollar, where it costs N1,660 to get one dollar as of Thursday.

On ChipperCash, an online platform for international transfers, payment cards, and investing, the rate is significantly higher at N1,803.04/$1.

The naira traded at a high of N1,620 on the official market on Wednesday, closing at N1,581.26/$1, depreciating by 0.32% at the NAFEM window.

FX turnover also crashed by 21.72% on Wednesday, dropping to $108.16 million, according to data from the FMDQ.

This constant weakening of the naira occurred amid a recent claim by the Governor of the Central Bank, Yemi Cardoso, that the country has already experienced the worst of naira volatility regarding foreign exchange.

During an interview with Bloomberg TV, Cardoso said he is satisfied with how far they have been able to manage the currency crisis in the past few months.

READ ALSO: High dollar demand push naira to lowest level since March 15

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Regarding whether the naira has reached its peak value or if further appreciation is expected, the CBN chief stated that it depends on “a host of different issues,” implying that the fiscal side plays a significant role in determining the value of the currency.

Cardoso, however, added that it is a work in progress as they will continue to implement certain macroeconomic fundamentals that will positively impact the market.

In an effort to save the naira from its recent crash, the CBN earlier today announced the approval of the sales of foreign exchange (FX) to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions.

In a circular signed by A. A Mahdi, the Acting Director of Trade and Exchange at the CBN, disclosed that the sum of $20,000 is to be sold to each BDC at the rate of N1,450/$1.

Like after previous sales to BDCs, it is expected that the naira may rise again amid constant pressures from summer holiday-goers.