The Nigerian naira witnessed mixed fortunes in forex markets on Tuesday, February 20th, 2024, with the official exchange rate settling at N1551.24 to a dollar while the peer-to-peer (P2P) market saw rates crossing N1800/$1.
Despite a significant rise of 76.61% in foreign exchange turnover to $117.32 million, the intra-day high in the official market remained elevated, closing at N1,701 against the dollar by the end of trading.
However, the parallel forex market experienced a decline, with rates slipping to N1,700/$1, marking a 2.65% decrease compared to the previous day’s rate.
The Central Bank of Nigeria (CBN)’s efforts to enhance forex supply have faced ongoing challenges, despite various policy implementations.
Data from the Nigeria Autonomous Foreign Exchange Market (NAFEM) revealed that the naira appreciated by 3.03% in the official market, closing at N1,551.24 to a dollar, representing a significant gain compared to the previous day’s close of N1,598.24.
Forex turnover at the close of trading in the official NAFEM window surged by 76.61% to $117.32 million compared to the previous day.
In contrast, the naira depreciated against the dollar in the unofficial P2P forex market, with rates quoted at N1,700/$1, reflecting a 2.65% decrease from the previous day’s rate of N1,655.
Furthermore, the naira weakened against the Euro by 4.97%, closing at N1810/EUR1 compared to N1720/EUR1 reported the previous day. The Great British Pound (GBP) also saw a decline, closing at £1/N2120, marking a notable decrease of 3.77% compared to the previous day’s rate of N2,040.
In the cryptocurrency market, where forex is traded using stablecoins, the naira settled at N1,802.44/$1.
In related news, the National Security Adviser’s Office, in collaboration with the CBN, has initiated a joint effort to combat forex speculation and address issues affecting economic stability. This partnership aims to coordinate actions with leading law enforcement agencies to curb activities contributing to the naira’s depreciation and economic instability in Nigeria.
