Naira Strengthens In Parallel Market, Trades At Unbelievable Rate

Naira Strengthens In Parallel Market, Trades At Unbelievable Rate

The Nigerian Naira experienced a significant appreciation against the US dollar on Friday, strengthening in both the official and parallel segments of the foreign exchange (FX) market…..READ ALSO Black Market Dollar To Naira Exchange Rate Today, 13th April 2024

In the parallel market, the currency appreciated to ₦1,150 per dollar, marking a 0.86 percent increase from ₦1,160 recorded on April 11.

Currency traders in Lagos, commonly referred to as bureau de change (BDC) operators, reported the buying rate of the greenback at ₦1,110 and a selling price at ₦1,150, thus earning a profit margin of ₦40.

Lawal, a BDC operator in Lagos, commented, “The dollar is falling and it is not my fault. It is how the FX market is now.”

Simultaneously, the FMDQ Exchange, which oversees official foreign exchange trading in Nigeria, noted that the naira rose by 7.16 percent, or ₦88.23, to ₦1,142.38/$ on Friday, up from ₦1,230.61/$ on Monday.

This improvement in the naira’s value comes shortly after the Central Bank of Nigeria (CBN) initiated the third tranche of sales to BDC operators, aiming to boost liquidity and stabilize the currency.

On April 8, the CBN began selling foreign exchange to BDC operators at a rate of ₦1,101/$, a move designed to enhance the availability of foreign currency in the market.

Additionally, the CBN directed all banks to cease using foreign currency-denominated collaterals for naira loans, further underscoring the regulator’s efforts to strengthen the naira against other major currencies.

These measures are part of the financial regulator’s broader strategy to bolster the naira and ensure economic stability. In response to these positive developments, the renowned financial institution Goldman Sachs Group Inc. projected on Friday that the naira could extend its gains, potentially trading below ₦1,000 to the dollar in the foreseeable future.

Join our channel for more latest news https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32