Naira Appreciates To ₦1,570/$ At Parallel Market

The Nigerian Naira appreciated against the US Dollar in the parallel section of the foreign exchange (FX) market on Wednesday, recording a 1.88 percent increase to ₦1,570.

This marks a significant rebound from the ₦1,600/$ rate observed on March 11, as reported by currency traders and Bureau de Change (BDC) operators in Lagos.

The BDC segment, crucial for retail transactions, saw the buying rate of the US dollar set at ₦1,550 and the selling rate at ₦1,570, generating a profit margin of N20 for traders.

Conversely, in the official FX market, the Naira experienced a depreciation of 0.78 percent, falling to ₦1,615.94/$ on Wednesday, down from ₦1,603.38/$ on March 12.

This divergence between the official and parallel market rates continues to highlight the complexities within Nigeria’s foreign exchange environment.

According to data from the FMDQ Exchange, which oversees official FX trading, the Naira’s performance varied, hitting a high of ₦1,635 and a low of ₦1,500 during the trading session.

Moreover, the FMDQ reported a significant increase in daily FX turnover, which surged by 103.59 percent to $248.75 million compared to $122.18 million recorded in the previous trading day.

In related developments, the federal government has expressed optimism about the impact of rising oil production on the nation’s economy.

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

Edun emphasized the significance of this increase as a major source of dollar revenue and non-inflationary government funds.

He further stated that the boost in oil revenue is expected to provide the necessary funds for critical infrastructure development.