Jonathan Nwokpor
At the end of business on Friday, the value of the Naira relative to the US dollar had drastically decreased.
This is in spite of recent actions by the Central Bank of Nigeria, which caused the FX supply turnover to decline by 74% to $84.10 million.
The Naira lost value against the US dollar on Friday, falling to N1,537.96 from N1,498.25 on Thursday, according to data from FMDQ.
This is a decrease of N39.71, or 2.6%, from the closing price of trade on Thursday of N1,498.25.
On the parallel market, the value of the Naira fell from N1,575.00 per US dollar on Thursday to N1,590 on Friday.
The volatility in Forex has persisted over the past week. The official foreign exchange market saw Naira trading at N1,534.39 per US dollar on Monday, N1,499.07 on Tuesday, N1503.38 on Wednesday, and N1,498.25 on Thursday.
The CBN announced new guidelines on Wednesday that prohibit the payment of Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) in cash. This coincided with the devaluation observed in both FX markets.
In a similar vein, International Oil Companies (IOCs) with operations in Nigeria were prohibited by the top bank from repatriating all of their foreign exchange earnings.
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