Thursday, 09 May 2024 04:46

Naira continues decline at parallel market

Rate this item
(0 votes)

On Wednesday, the naira experienced a decline to N1,450 at the parallel segment of the foreign exchange (FX) market. This current rate indicates a 1.4 percent depreciation compared to the N1,430 rate observed on May 6. Currency traders, commonly referred to as bureau de change (BDC) operators, set the buying rate of the dollar at N1,410 and the selling price at N1,450, yielding a profit margin of N40.

Meanwhile, at the official window, the local currency depreciated by 1.98 percent to N1,421.06 on May 8, down from N1,416.57 on May 7. During trading, the dollar fluctuated between a high of N1,440 and a low of N1,335, as reported by data from FMDQ Exchange, the platform overseeing FX trading in Nigeria.

The Central Bank of Nigeria (CBN) revised its directive on the repatriation of export proceeds by international oil companies (IOCs) on May 7. In February, the CBN had imposed limits on the transfer of proceeds from crude exports by IOCs to offshore parent company accounts, as part of measures to stabilize the FX market.

The CBN expressed concern over the impact of these fund transfers on liquidity in the domestic FX market, prompting the need for policy adjustments. As per the updated directive, the initial 50% of repatriated proceeds can be pooled immediately or at a later date as required. Banks are instructed to submit requests for cash pooling, supported by necessary documentation, for approval by the CBN.

Moreover, the remaining 50% balance of repatriated export proceeds can be utilized by IOCs for various financial obligations within Nigeria, including cash calls, domestic loan repayments, and transaction taxes such as the Nigerian Content Development (NCD) levy and education tax. Additionally, IOCs are permitted to sell forex at the FX market using this balance, as outlined by the apex bank.

March 16, 2025

Petrol price war drives marketers to reduce purchases as losses mount

A price war between Dangote Petroleum Refinery and the Nigerian National Petroleum Corporation Limited (NNPCL)…
March 16, 2025

El-Rufai speaks further on Tinubu’s presidency, Chicago scandal, other issues

Former Kaduna State Governor Nasir El-Rufai has revealed that he and other political leaders were…
March 14, 2025

How leaders train themselves to rethink and adapt faster

Paola Cecchi-Dimeglio Recognizing the value of rethinking is one thing—making it a habit is another.…
March 01, 2025

Man offers to split $525,000 jackpot with thieves who stole his credit card to buy…

A Frenchman appealed to the homeless thieves who stole his credit card to buy a…
March 14, 2025

Gunmen invade Kaduna communities, abduct 10

Suspected bandits have abducted ten villagers from three remote communities in Kajuru Local Government Area…
March 16, 2025

Here’s the latest as Israel-Hamas war enters Day 527

Freed Israeli hostage speaks for the first time about his 505 days of surviving Hamas…
March 15, 2025

Humanoid robot with human-like competence unveiled in China

Du Qiongfang Humanoid robot manufacturer AgiBot in Shanghai unveiled on Tuesday its latest humanoid robot…
January 08, 2025

NFF appoints new Super Eagles head coach

The Nigeria Football Federation (NFF) has appointed Éric Sékou Chelle as the new Head Coach…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.