Trades, banks sell dollar at new exchange rate as naira crashes again in all FX markets

The naira continued its poor performance against the US dollar in the official and unofficial foreign exchange markets.

The latest data from FMDQ securities shows that the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira exchange rate to the dollar, closed at N1,488.60/$1 on Wednesday, June 6, 2024.

Wednesday's rate represents a 0.8% or N11.65 loss for the naira against the US dollar compared to Tuesday's closing price of N1,476.95/$1.

The naira's fall was due to increased demand for foreign currencies following the suspension of industrial actions embarked on by organized labour, which crippled economic activities on Monday and partially on Tuesday.

Data showed that the value of forex transactions executed at the official market on Wednesday stood at $205.43 million. However, against the pound sterling and the euro, the naira maintained stability, exchanging on Wednesday at N1,879.89/£1 and N1,604.70/€1, the same rate from Tuesday, CBN data shows.

Naira to dollar at unofficial market

The naira followed its familiar depreciation pattern in the parallel market, also known as the black market.

According to traders who spoke to Legit.ng, the naira depreciated against the US dollar to N1,500.

Abdullahi a BDC trader said: "We are selling the dollar at N1,500 or N1,510 depending on how much the buyer wants to sell, while we buy at N1,480."

Expert predicts naira new exchange rate against dollar

Legit.ng earlier reported that renowned economist Bismarck Rewane has disclosed his expectations for the performance of the naira in the remainder of 2024

The chief executive officer of Financial Derivatives Company (FDC) expects the naira to continue in its current state.

He also discussed inflationary trends and predicted the state of the Nigerian economy in the next few years under President Tinubu's administration.