Naira Appreciates Further In Parallel Market

The Nigerian Naira, on Monday, gained strength against the US dollar in the parallel section of the foreign exchange (FX) market, sparking optimism among currency traders and economic observers.

In the bustling streets of Lagos, bureau de change (BDCs) operators were seen quoting the naira at ₦1,440 to the greenback, a notable appreciation from previous rates.

The buying price hovered around ₦1,400 while the selling price settled at ₦1,440, leaving a profitable margin of N40 for traders.

This positive movement marks a significant appreciation of N30, or 2.04 percent, from the ₦1,470 to dollar rate observed on March 22.

The surge in the naira’s value has brought a wave of cautious optimism among market participants, with many eyeing the sustainability of this trend.

In the more regulated realms of the Nigerian foreign exchange market, the FMDQ Exchange – a platform overseeing the country’s official FX transactions – witnessed the naira’s value rise to ₦1,408.08 to the dollar, an increase of 1.64 percent or N23.41 from ₦1,431.49 on March 22.

Amidst these financial developments, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, on March 24, called on the Central Bank of Nigeria (CBN) to initiate a paradigm shift in how the country sources its foreign exchange.

Gwadabe said, “In summary, that is my observation: the increasing resilience, capacity, and arsenal of the Central Bank of Nigeria to defend our local currency through several measures.”

“My advice is for them to continue widening and undergo a paradigm shift in sourcing foreign exchange for the economy.”

Gwadabe also harped on the importance of resolving valid foreign exchange (FX) backlogs to improve market stability and attract international investments.