Naira makes biggest gain in months, exchanges N1,250/$ at parallel market
The Naira is sustaining its honeymoon as it appreciated against the dollar on Monday, exchanging N1,250 to a dollar.
The FX rate is a 0.43 percent increase from the N1,280 recorded on March 29.
Currency traders in Lagos, also known as bureau de change (BDCs) operators, quoted the buying rate of the greenback at N1,230 and the selling price at N1,250 — leaving a profit margin of N20, as per reporting by Cable.
“The dollar keeps declining and it is affecting business but business is picking up gradually,” a currency trader named Aliyu said.
At the official section of the FX market, the local currency depreciated by 0.69 percent to N1,309.39/$ on March 28 — from N1,300.43/$ on March 27.
Meanwhile, Aminu Gwadabe, president, Association of Bureau de Change Operators of Nigeria (ABCON), on March 31, said the recall of members into the FX market has led to stability in the exchange rate.
“The reconsideration of the BDCs into the mainstream foreign exchange market has not only cleared illegal economic behaviours of hoarding, rent-seeking, round tripping and FX holding position, and led to the emergence of exchange rate convergence,” Gwadabe said.
Gwadabe also said the increase in FX inflows through the CBN’s monetary tools boosts foreign reserves, granting the apex bank the power to defend the local currency.