Naira Strengthens Against Dollar In Parallel Market Amidst FX Volatility

The Nigerian currency, the naira, saw a notable appreciation on Wednesday, strengthening to ₦1,860 against the dollar in the parallel market, marking a significant recovery from its previous position.

This improvement, representing a 2.11 per cent increase or N40 appreciation compared to its Tuesday rate of ₦1,900, was reported by currency traders, including Bureau De Change operators (BDCs), in Lagos.

During the trading day, although the rate fluctuated, it ultimately settled at a lower figure by the market’s close.

BDC operators disclosed that they purchased the dollar at ₦1,820 and sold it at ₦1,860, thus operating with a N40 profit margin.

Concurrently, the official market witnessed a modest appreciation of the local currency by 0.56 percent, closing at ₦1,542.58 to the dollar on Wednesday, down from ₦1,551 on Tuesday, as recorded by the FMDQ Securities Exchange.

This platform, which oversees official foreign exchange trading in Nigeria, noted that the day’s trading peaked at ₦1,755 and dipped to a low of ₦1,050 against the greenback.

Amidst the volatility in the foreign exchange market, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, took a firm stance against cryptocurrency platforms operating in Nigeria.

Through a statement on social media, Onanuga criticized Binance for “blatantly setting exchange rate for Nigeria,” accusing the platform of usurping the Central Bank of Nigeria (CBN)’s role.

He suggested that Binance and similar crypto platforms should be banned from the Nigerian market.

In response to the fluctuating FX market conditions, the CBN, in collaboration with the Office of the National Security Adviser (ONSA), announced a partnership aimed at investigating and sanctioning those involved in illicit foreign exchange activities.