Naira appreciates vs the dollar and trades for N1,150/$ on the black market

In the parallel market on Monday, the naira gained additional momentum to reach N1,150 per dollar.

In comparison to the N1,230 it traded for last Friday, this is a N80, or 6.5 percent, increase.

Currency dealers, often referred to as Bureaux De Change operators (BDCs), told TheCable in Lagos that the illicit market was starting to see less demand for the dollar.

The dealers set the dollar’s purchase price at N1,120 and its selling price at N1,150, making a N30 profit margin.

Dollar is making a slow comeback to the market. We are witnessing an increase in dollars, stated a trader going by the name Aliyu.

On the official market, the local currency gained 5.68 percent, closing at N789.94 to the dollar on Friday, after closing at N837.49/$ on Thursday.

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Information from the FMDQ OTC Securities Exchange, which regulates official foreign exchange trading in Nigeria, indicates that the day’s trade peaked at N900/$ and settled at N696.06.

The Central Bank of Nigeria had said that it will provide liquidity in the Nigerian foreign exchange market by “intervening from time to time” as part of its duty to maintain price stability.

These CBN stated that the operations will progressively taper off as market liquidity recovers.

23 October 2023 The coordinating minister for the economy and minister of finance, Wale Edun, stated that Nigeria anticipates receiving $10 billion in foreign exchange in the coming weeks to help relieve the foreign exchange market’s liquidity.