Meanwhile, the volume of dollars traded (turnover) in the NAFEM rose year-on-year (YoY) by 61 per cent to $33.7 billion in the first nine months of 2024 (9M’24) from $20.9 billion in 9M’ 24.
Business
Naira faces fresh pressure, exchanges at N1,705/$ in parallel market
Naira faces fresh pressure, exchanges at N1,705/$ in parallel market
There are indications that the nation’s currency has come under fresh demand pressure in the parallel market with significant depreciation recorded in the past week.
Yesterday, parallel market dealers traded at N1,705/ $1.00 down from N1,655/$1.00 a week ago, with sustained day-to-day slide.
Vanguard’s Naira watch indicates the steady slide is happening for the first time in several weeks unlike the daily fluctuation within a narrow band of between N1645 and N1,655/$1.00 recorded in the past two months.
Dealers in the parallel market told Vanguard that there was an indication of supply shortfalls in the past two weeks which may have sparked the depreciation in the market.
The development may have also affected the official market segment as data from FMDQ, shows the indicative exchange rate for Nigeria Autonomous Foreign Exchange Market, NAFEM, depreciated to N1541.94/$1.0 yesterday from N1540.78/ $1.0 over the weekend, indicating a 96 kobo depreciation.
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The exchange rate development in the third quarter of 2024, Q4’24, also indicated a reversal of the positive trend recorded towards the end of last year.
In a surprising positive trend, the Naira closed last year in the parallel market at N1,215/$1.00, after it had previously hit N1,800/$1.0 quarter average in the third quarter of 2023.
The local currency further resumed the new year 2024 in a positive trend with an appreciation at N1,220/$1.0.
However, the trend reversed in the second quarter of the year with steady depreciation to a quarterly average of N1,620/$1.00 at the end of the second quarter, 2024.
After two months of stability at N1,630/$1.00 in most parts of the third quarter, the latest round of depreciation may have now started, with the fears that the high point of depreciation in Q4’23 may be underway for a repeat.
However, stakeholders in the economy have projected further rises in prices due to the continuous depreciation of the naira against the dollar especially in the parallel market.
Naira faces fresh pressure, exchanges at N1,705/$ in parallel market
Business
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
Oil marketers have raised concerns about a potential fuel scarcity following the shutdown of the Nigerian National Petroleum Company Limited (NNPCL) petrol purchasing portal.
The shutdown has prevented dealers from placing new orders for fuel, leading to supply disruptions.
According to marketers, over 90 million litres of petrol, worth approximately N79 billion, are pending delivery from NNPCL.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that while marketers can still load fuel, they cannot access the portal to check prices or make new purchases.
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Ukadike stated that there are currently over 2,000 pending tickets for 45,000-litre petrol trucks, which amounts to a significant volume of fuel awaiting supply. He warned that the continued closure of the portal could result in another wave of fuel shortages across the country.
Other marketers, speaking anonymously, echoed concerns that the portal’s shutdown is already causing fuel shortages.
One marketer mentioned, “Everyone is affected because we all go to the NNPC portal to place our orders, and when the portal is inaccessible, supply is disrupted.”
As of now, there has been no official response from NNPCL spokesperson Olufemi Soneye regarding the situation. However, some marketers believe the portal was shut down temporarily to resolve backlogs of pending orders.
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
Business
Naira appreciates to N1,685 in parallel market
Naira appreciates to N1,685 in parallel market
The Naira yesterday appreciated to N1,685 per dollar in the parallel market from N1,700 per dollar on Monday.
Similarly, the Naira appreciated to N1,659.26 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,659.26 per dollar from N1,669.15 per dollar on Wednesday, indicating N9.89 appreciation for the naira.
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The volume of dollars traded (turnover) in the official market increased sharply by 155.2 percent to $450.39 million from $176.45 million traded on Wednesday.
Consequently, the margin between the parallel market and NAFEM rate narrowed to N25.74 per dollar from N30.85 per dollar on Wednesday.
Naira appreciates to N1,685 in parallel market
Business
Naira records marginal appreciation, exchanges for N1,700/$
Naira records marginal appreciation, exchanges for N1,700/$
The Naira yesterday appreciated to N1,700 per dollar in the parallel market from N1,705 per dollar on Monday.
Similarly, the Naira depreciated to N1,669.15 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,669.15 per dollar from N1,541.94 per dollar on Monday, indicating N127.2 appreciation for the Naira.
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The volume of dollars traded (turnover) in the official market declined by 2.97 percent to $176.45 million from $181.86 million traded on Monday. Consequently, the margin between the parallel market and NAFEM rate narrowed to N30.85 per dollar from N163.06 per dollar on Monday.
Naira records marginal appreciation, exchanges for N1,700/$
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