The Central Bank of Nigeria (CBN) has infused more than $55 million into commercial banks to help stabilize the foreign exchange (FX) market. However, despite this intervention, the naira depreciated by approximately N5 per US dollar in the official market, as demand for dollars continued to outstrip supply.
Due to this lack of foreign exchange supply, banks have found it challenging to provide the $25,000 weekly foreign exchange requirements of Bureau de Change (BDC) operators. Because of the continuous pressure on Nigeria’s currency in international trade, the official market’s exchange rate ended the day at N1,532 to the US dollar.
Meanwhile, the British pound and euro gained strength against the US dollar, influenced by concerns over trade tariffs and a potential economic slowdown in the United States, according to MarketForces Africa.
In the parallel (black market), the currency rate stood at N1,580 per dollar, creating a greater difference between the official and unofficial markets. Speculative traders hoping to profit from exchange rate swings have been concentrating on this spread, which earlier in the week shrank from 3.40% to 3.07%.
