Naira Strengthens In Parallel Market

The Nigerian Naira witnessed an appreciation against the US Dollar in the parallel foreign exchange (FX) market on Wednesday, marking a notable 1.88 percent increase to N1,570……READ ALSO Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today 14th March 2024

This rebound comes after the Naira traded at N1,600/$ on March 11, according to reports from currency traders and Bureau de Change (BDC) operators in Lagos.

In the BDC segment, essential for retail transactions, the buying rate for the US dollar stood at N1,550, while the selling rate reached N1,570, allowing traders to profit by N20.

Conversely, in the official FX market, the Naira experienced a 0.78 percent depreciation, sliding to N1,615.94/$ on Wednesday, down from N1,603.38/$ on March 12.

The disparity between the official and parallel market rates underscores the complexities within Nigeria’s foreign exchange landscape.

Data from the FMDQ Exchange revealed fluctuations in the Naira’s performance, reaching highs of N1,635 and lows of N1,500 during the trading session.

Additionally, the FMDQ reported a significant surge in daily FX turnover, increasing by 103.59 percent to $248.75 million, compared to $122.18 million recorded in the previous trading day.

In related news, the federal government has expressed optimism regarding the impact of increased oil production on the nation’s economy.

Minister of Finance and Economy, Wale Edun, disclosed that Nigeria’s crude oil output has risen to 1.65 million barrels per day (bpd) from 1.25 million bpd in June 2023.

Edun highlighted the importance of this increase as a substantial source of dollar revenue and non-inflationary government funds, further stating that the boost in oil revenue is expected to finance critical infrastructure development.