On February 26, 2024, the Naira demonstrated a notable appreciation against the US dollar, witnessing an official exchange rate strengthening by 5.22% to N1582.94/$1. Nonetheless, the Naira faced heightened demand pressure, reaching an intra-day high of N1,778 against the dollar. This escalation exacerbates the ongoing depreciation trend of Nigeria’s currency, underscoring the volatility and challenges encountered within the foreign exchange market.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official platform for foreign exchange trading, disclosed a significant appreciation of the domestic currency by 5.22%. The Naira concluded the trading day at N1,582.94 per dollar, reflecting an N82.56 drop or a 5.22% increase compared to the N1,665.5 rate observed on the previous Friday. The intraday high hit a record of N1778/$1, while the intraday low settled at N1300/$1, showcasing a wide spread of N478/$1. Forex turnover at the close of trading amounted to $154.16 million, marking a 1.47% increase compared to the prior day.
Similarly, the Naira experienced appreciation against the dollar in the parallel forex market, with the exchange rate quoted at N1,650/$1. This indicates a 6.06% increase from the N1,750 rate recorded the day before. The Great British Pound (GBP) stood at £1/N2100, marking an increase from £1/N2,260 recorded previously, representing a notable 7.62% increase. Additionally, the Naira appreciated against the Euro by 5.95%, closing at N1850/EUR1 compared to N1960/EUR1 reported the previous day. In the cryptocurrency market, where forex is transacted using stablecoins, the Naira settled at N1,637.30/$1.
Central Bank of Nigeria’s (CBN) intention to introduce stringent measures on the purchase of foreign currencies through Bureau De Change (BDC) operators, particularly targeting transactions related to overseas education and medical expenses. As part of the apex bank’s revised regulatory guidelines for BDCs in Nigeria, a cap on foreign currency purchases for school fees at $10,000 per customer annually is proposed. The process necessitates the transaction to be conducted through the BDC’s domiciliary account with a Nigerian bank, ensuring direct payment to the educational institution. The proposed guidelines stipulate specific documentation requirements, including a duly filled e-Form A, proof of admission or course registration, the educational institution’s bill or invoice, and, for postgraduate studies, a copy of the undergraduate degree certificate or an officially verified statement of results.
