Naira Surges by 6.3% to N890/$ at Parallel Forex Market

The naira, Nigeria’s official currency, is now trading at N890 per dollar in the parallel segment of the foreign exchange (FX) market.

This recent valuation reflects a remarkable increase of 60 or 6.3 percent from its previous rate of N950 per dollar just last week.

According to Bureaux De Change (BDC) operators in the Victoria Island area of Lagos, who spoke to reporters on Wednesday afternoon, the naira has exhibited a steady upward trajectory against the US dollar within the street market. These operators cited that the purchasing price of the dollar stands at N870, while the selling price is set at N890, ultimately generating a profit margin of N20.

Read also: NNPC Secures $3 Billion Emergency Loan to Stabilize Naira.

A currency trader within the Victoria Island market stated, “Dollar has been dropping. Yesterday, I sold it for N930. No matter how the dollar goes up, it always comes back down. That’s how it is.” Meanwhile, currency traders in the Agbara region of Ogun state indicated that they are acquiring the local currency at N850 per dollar and selling it for N860 per dollar.

Conversely, at the investors and exporters (I&E) forex window, the naira faced a depreciation of 4.08 percent, concluding at a rate of N774.77 per dollar on Tuesday, as documented by details from the FMDQ OTC Securities Exchange, the official marketplace for FX trading. The peak exchange rate observed during the day’s trading was N799.9 to the dollar before settling at N774.77. Transaction data revealed that a total of $95.79 million worth of forex was exchanged among market participants.

On Monday, the Central Bank of Nigeria (CBN) said it would take new measures to stabilize the naira against the dollar.

Read also: NLC Threatens Nationwide Shutdown Over Petrol Price Hike.

Folasodun Shonubi, acting governor of the CBN, said President Bola Tinubu was worried about the consistent fall of the local currency against the greenback; hence efforts would be made to curb the situation.

Shonubi remarked, “We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply, but are touched by speculative demand from people. Some of the plans and strategies, which I am not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.”

He added, “But my presence here is more about the president’s concerns and his needs to know that we are doing something about it, assurances of which I have given him totally. We are doing things which will significantly impact the market in a few days time and we will all see it.”

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