The Nigerian currency ended the month weaker, despite a monthly decline in the dollar index.

Data from the FMDQ revealed that the naira posted a monthly loss of more than five per cent against the haven currency, settling at N1,485.99 against the greenback on Friday, weaker than the N1,402.67/$ quoted at the beginning of last month.

On a day-to-day trading basis, the local currency closed flat at 0.08 per cent as the dollar exchanged at N1,485.99 on Friday compared to N1,484.75 quoted on Thursday at NAFEM.

Despite improved liquidity and the apex bank’s efforts to impose various restrictions on BDC activities, such as street trading, international outward transfers, and prohibition of the local currency’s presence on virtual P2P trading platforms, the naira has still been under tremendous pressure in the country’s fragile foreign exchange market.

In May, the total amount of dollars offered by willing vendors and buyers reached $4.60 billion.

According to FMDQ’s daily market summary, the intraday high ended the month at N1,550 per dollar, higher than N1,445 at the start of the month. In contrast to the initial quote of N1,299.42 per dollar at the beginning of the month, the intraday low finished at a firmer N1,174.88/$1.

Dollar Index posted its first monthly loss in 2024

U.S. inflation increased in April as anticipated, raising doubts about when the U.S. Federal Reserve will be able to lower interest rates. The dollar fell on Friday, posting its first monthly decline in 2024.

The Bureau of Economic Analysis of the Commerce Department reported on Friday that the price index for personal consumption expenditures (PCEs) rose by 0.3% in March, consistent with the unrevised gain in the previous month.

Since March 2022, the Fed has increased borrowing costs by 525 basis points to weaken demand in the world’s largest economy. The first-rate cut was originally anticipated by financial markets to occur in March but was postponed to June and is currently scheduled for September.

Following lower revisions to consumer spending, the prior estimate of 1.6% annualized growth for the U.S. economy from January through March was revised down to 1.3%, according to official data released on Thursday.

After April’s hints of U.S. inflation stabilization, Treasury yields declined, which some saw as a warning that the Fed would still decide to lower rates later this year.

The yield on the benchmark 10-year U.S. note dropped by 5.1 basis points to 4.503% late on Thursday, from 4.554%, and the yield on the 30-year bond dropped by 3.4 basis points to 4.6511% from 4.685%.

The yield on the 2-year note, which normally follows forecasts for interest rates, dropped 5.2 basis points to 4.8768% late on Thursday from 4.929%.

The Naira on Wednesday appreciated against the dollar at the official foreign exchange on the first anniversary of President Bola Tinubu in office.

FMDQ data showed that the Naira appreciated to N1329.65 on Wednesday from N1339.33 on Tuesday.

This represents an N9.68 gain against the dollar compared to N1339.33 traded on Tuesday at the foreign exchange market.

Similarly, at the parallel market section, the Naira appreciated to N1480 per dollar on Wednesday from N1500 recorded the previous day.

Meanwhile, the figure is a fall-cry from the exchange rate in May 2023, which stood at N460.702 per dollar due to the Naira floating by the Tinubu-led administration in June 2023 and January 2024.

The development comes as the Association of Bureaux De Change Operators in Nigeria urged the Central Bank of Nigeria to review minimum capital requirements for its members.

The foreign exchange (FX) market opened on Monday, with the naira exchanging with the dollar at N1,520 on the parallel market, also known as black market.

This represents 1.32 percent depreciation over the level of N1,500 exchanged on Friday on the parallel market.

The naira depreciation followed strong demand for dollars by travelers and importers, amid supply shortage, a trader said on Monday.

The local currency on Friday closed flat against the US dollar, ending the week marginally strong at the official foreign exchange market.

After trading on Friday, the naira gained slightly by 0.19 percent as the dollar was quoted at the rate of N1,482.81 compared to N1,485.66 quoted on Thursday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to the data from the FMDQ Securities Exchange Limited.

The FX market summary released by the FMDQ showed that the intraday high closed at N1,519 per dollar, weaker than N1,510 quoted on Thursday. The intraday low closed flat at N1,400 on Friday as against N1,401 quoted on Thursday.

The local currency appreciated by 0.67 percent against the dollar on the parallel market, also known as the black market. The naira was quoted at N1,500 on Friday as against N1,510/$1 quoted on Thursday.

1United States Dollar equals 1,447.50 Nigerian Naira

The naira stayed around a key support line in the country’s unofficial market as analysts expect Nigeria’s apex bank to increase interest rates later today.

At the parallel segment of the foreign currency (FX) market on Monday, the naira strengthened significantly, trading at N1,490 per dollar. The naira appreciated by 1.34 percent from the N1,510/$ value seen on Friday. Currency traders in Nigeria’s business capital quoted the buying rate of the haven currency at N1,460 and the selling price at N1,490.

The local currency also increased by 1.93% to N1,469/$ in the official FX market on Monday, from N1,497.3/$ traded on May 17.

1 United States Dollar equals 1,432.50 Nigerian Naira.

The Nigerian naira had earlier in the week showed positive signs but now, it’s losing its clout against the dollar.

The naira is still fighting hard against the dollar. It has made a small improvement overnight as the rate dropped from N1,420.50 to N1,418.50 this morning. Therefore, Naira grew by N2.00 against the dollar.

Note: This isn’t balck market rate.

Here’s how naira performed against dollar in the past one month.

The naira traded at a loss at the official market, depreciating to N1,402 against the United States dollar on Thursday.

According to data from the FMDQ exchange securities, the naira dropped by N12 or 0.86 per cent from the N1,390 recorded at the close of trading activity on Tuesday.

There was no trading activity on Wednesday due to the Worker’s Day celebration.

At the Nigerian Autonomous Foreign Exchange Market, the intraday high closed at N1,445 on Thursday weaker than N1,450 on Tuesday. The intraday low also depreciated to N1,299 on Thursday as against  N1,200 on Tuesday.

Dollars supply at NAFEX appreciated by 3.1 per cent or $7m to $232 on Thursday from $225.36m recorded on Tuesday.