Naira Gains To N1,278.58/$1 At Parallel Market, Strongest In 2 Months

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The Nigerian naira appreciated to N1,250 per dollar in the parallel section of the foreign exchange (FX) market on Monday. This marks a 0.43% increase from the N1,280 rate recorded on March 29. Bureau de change (BDC) operators quoted buying rates of N1,230 and selling rates of N1,250 for the greenback, resulting in a profit margin of N20. Despite the dollar’s decline, the business is gradually picking up, according to a currency trader named Aliyu. In the official FX market, the local currency depreciated by 0.69% to N1,309.39/$ on March 28 from N1,300.43/$ on March 27. 


Meanwhile, Aminu Gwadabe, the president of the Association of Bureau de Change Operators of Nigeria (ABCON), said on March 31 that the recall of BDC members has led to stability in the exchange rate. Gwadabe said, “The reconsideration of the BDCs into the mainstream foreign exchange market has not only cleared illegal economic behaviours of hoarding, rent-seeking, round tripping and FX holding position but also led to the emergence of exchange rate convergence.” Gwadabe also stated that the increase in FX inflows through the CBN’s monetary tools boosts foreign reserves, granting the apex bank the power to defend the local currency.

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