Banks dollar sale falls as naira weakens to 1,479/dollar

The total value of transactions recorded at the official Nigerian Autonomous Foreign Exchange Market fell from $465.29m on Tuesday and $203.93m on Wednesday, data obtained from FMDQ Exchange showed on Thursday.

This indicates a 56 per cent drop in the value of transactions recorded on the FMDQ platform which records volume and value of transactions on NAFEM, the official FX market.

This drop in FX transaction came on the heels of a steady increase in the value of FX transactions on the platform, following a series of circulars issued by the Central Bank of Nigeria.

The CBN had last week issues circulars compelling banks to sell their excess dollar holdings, among others. It also issued directives asking banks and FX dealers to report correct and transparent FX trading data.

Meanwhile, the naira fell by 1.4 per cent to the dollar at the parallel market on Thursday, following strong demand for dollars.

It traded at the rate of N1,480/$, N20 weaker than N1,460/$ quoted on Wednesday at the black market.

Bureau De Change operators speaking with The PUNCH said the rate had remained on a steady increase throughout the week.

Abdulahi Taura, a BDC operator, said the dollar was rising owing to a consistent demand for the greenback. Punch