Market News

The naira on Thursday lost 1.32 percent of its value as the dollar was quoted at N1,520 on the parallel market, commonly referred to as the black market. This represents a 1.32 percent loss when compared to N1,500/$ quoted on Wednesday.

“There is much demand from people who want to travel,” one trader said on Thursday.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, the naira lost 0.47 percent as the dollar was quoted at N1,507.83 compared to N1,500.79 quoted on Tuesday, according to the data from the FMDQ Securities Exchange Limited.

On Wednesday the Central Bank of Nigeria (CBN) announced the discontinuation of its Price Verification System (PVS) Portal, effective July 1, 2024. This decision comes in light of recent developments in the Nigerian Foreign Exchange Market.

The Price Verification System Portal was an online platform introduced by the CBN to ensure that the prices of goods and services for foreign exchange transactions were accurately verified. It aimed to prevent over invoicing and under-invoicing, thus ensuring fair pricing in Nigeria’s import and export activities.

“Without price verification, there is a higher risk of fraudulent activities such as over-invoicing and under-invoicing. Importers might declare incorrect prices to evade taxes or manipulate foreign exchange regulations,” an investment banker said.