In a significant development, the Nigerian naira demonstrated a notable appreciation on Friday, climbing to N1,280 per dollar in the parallel foreign exchange (FX) market.
This reflects a remarkable 5.19 percent rise from the N1,350/$ rate recorded on March 27, indicating a strengthening of the local currency.
Currency traders, also known as bureau de change (BDCs) operators in Lagos, reported the buying rate of the dollar at N1,260, with a selling price of N1,280, yielding a profit margin of N20.
Despite this positive trend, some traders voiced concerns about dwindling business activity as customers opted to retain their foreign currencies rather than exchange them.
“The prices of the dollar and other major currencies have been declining. This is impacting our business as some customers prefer to hold onto their currencies instead of exchanging them with us,” noted Aliyu, a currency trader.
However, in the official segment of the FX market, the naira experienced a slight depreciation of 0.69 percent to N1,309.39/$ on March 28, down from N1,300.43/$ on March 27.
In another development, the Central Bank of Nigeria (CBN) announced on March 29 that the economy had witnessed over $1.5 billion in foreign exchange inflow for the month, showcasing the effectiveness of its monetary policy initiatives.
The CBN reiterated its commitment to maintaining market stability and ensuring appropriate pricing of the naira against major currencies worldwide under the leadership of Yemi Cardoso, the CBN governor.
This recent surge in the naira’s value in the parallel market signals a positive trajectory for Nigeria’s foreign exchange landscape, offering optimism for economic stability and growth in the foreseeable future.
