The Nigerian naira continued its downward slide against the US dollar, closing at ₦1,300/$ at the official market on Tuesday. This depreciation coincided with intensified efforts by the Central Bank of Nigeria (CBN) to stabilize the currency, including increased dollar sales to Bureau De Change (BDC) operators.
In a recent circular (TEM/FEM/PUB/001/013) signed by Dr. Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, the apex bank announced plans to sell $10,000 to BDCs at ₦1,021 per dollar. The directive also instructed BDCs to maintain a spread not exceeding 1.5% above the CBN’s rate.
Despite these measures, the naira’s value weakened further, marking a 66% decline from Monday’s rate of ₦1,234/$. In intra-day trading, the currency reached a high of ₦1,317/$ and a low of ₦1,000/$. However, the total daily turnover increased slightly to $133.65 million from $110.17 million on Monday.
At the parallel market, the dollar was traded between ₦1,300 and ₦1,320 on Tuesday, compared to ₦1,260 on Monday.
This move follows the CBN’s ongoing efforts to defend the naira, as outlined in earlier statements. The bank’s directive for eligible BDCs to deposit naira into designated CBN accounts starting April 22, 2024, underscores its commitment to managing currency volatility and ensuring the availability of foreign exchange.
As exchange rate fluctuations impact trade and economic stability, the CBN’s proactive measures aim to mitigate risks and maintain financial equilibrium in the market.