Naira Depreciates Against US Dollar At Parallel Market

Naira Depreciates Against US Dollar At Parallel Market

The Nigerian Naira faced a decline against the US Dollar at the parallel market, reaching ₦1,120 per dollar, down from ₦1,080 per dollar the previous day. Additionally, in the Nigerian Foreign Exchange Market (NAFEM), the Naira depreciated to ₦1,148.14 per dollar……READ ALSO Black Market Dollar To Naira Exchange Rate Today, April 17th, 2024

Data from FMDQ indicated a rise in the indicative exchange rate for NAFEM to ₦1,148.14 per dollar from ₦1,136.04 per dollar on the previous day, reflecting a ₦12.1 depreciation for the Naira. Consequently, the margin between the parallel market and NAFEM rates decreased to ₦48.14 per dollar from ₦56.04 per dollar.

In contrast, the Association of Bureau De Change Operators of Nigeria (ABCON) reported that the Naira has appreciated faster than expected against the US Dollar. BDC operators are currently purchasing the dollar at ₦980/$1 and selling it at ₦1,020/$1, compared to the official rate of ₦1161/$1 set by the Central Bank of Nigeria (CBN).

ABCON President Aminu Gwadabe noted the significant appreciation of the Naira over the past few weeks, attributing it to various measures implemented by the CBN, including clearing foreign exchange backlogs, providing FX to BDC operators, and cracking down on cryptocurrency platforms. Gwadabe commended the government for achieving a milestone where the parallel market rate is lower than the CBN rate for the first time in 15 years, attributing the stability to the bursting of speculative bubbles.

The current situation reflects a notable shift in the forex market dynamics, signaling improved confidence and stability in Nigeria’s currency.

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