Naira Gains Strength In Parallel Market, Trading At ₦1,470 Per Dollar

The Nigerian naira experienced a notable appreciation in the parallel foreign exchange market on Friday, trading at ₦1,470 per dollar, marking a 2 percent increase from the ₦1,500 rate on March 20.

Bureau De Change (BDC) operators in Lagos, the country’s commercial hub, have set the buying rate of the American currency at ₦1,430 and the selling rate at ₦1,470, yielding a profit margin of N40.

According to conversations with currency traders by TheCable, the naira’s recent surge in value has led to a decline in customer demand.

The traders attributed the reduced patronage to the strengthened local currency, which has lessened the frantic rush for dollars that typically characterizes the parallel market.

A trader who identified as Abdullahi said, “We don’t have customers like before and some BDC traders who bought the currency when the price was high would rather keep it.

“The rate was also not stable today.”

At the FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, the local currency dropped by 3.58 per cent to ₦1,431.49/$ on Friday — from ₦1,382/$ on March 21.

The dollar rate rose as high as ₦1,468, while the lowest rate for the day was ₦1,301 at the official market.