NAIRA APPRECIATES AT PARALLEL MARKET
The Nigerian naira gained ground against the US dollar over the weekend. It appreciated by N125, reaching N1,275 per dollar in the parallel market. This represents a significant increase of 9.8% compared to the N1,400 per dollar it traded at the close of business on Friday.
This positive development is likely linked to the Central Bank of Nigeria’s (CBN) decision to resume selling dollars to Bureau De Change (BDC) operators last week. The CBN announced it would sell $10,000 to each BDC at a rate of N1,021 per dollar, with a directive to operators to sell at a maximum spread of 1.5% above the CBN rate. This is a decrease from the previous rate of N1101 per dollar offered by the CBN.
The increased availability of dollars through BDCs is expected to further strengthen the naira by reducing pressure on the black market. This is a welcome sign for the Nigerian economy, as a stronger naira can help to lower inflation and stabilize import costs.
Additional details:
- The CBN circular referenced is TEM/FEM/PUB/001/013, signed by Dr. Hassan Mahmud, Director of Trade and Exchange Department.
- The previous BDC dollar purchase rate was N1101 per dollar.
Note: This restructuring removes unnecessary repetition and focuses on the key points:
- Naira appreciation against the dollar
- Increased dollar availability through BDC sales by CBN
- Potential positive impacts on the Nigerian economy
https://statisticss.com/2024/04/29/naira-appreciate…-parallel-market/
