Naira exchanges for N1,610/$ in parallel market

Data published by FMDQ, showed that the indicative exchange rate for Nigerian Foreign Exchange Market (NFEM) rose to N1,495.6 per dollar from N1,474.78 per dollar last weekend , indicating N20.82 depreciation for the naira.

Consequently, the margin between the parallel market and NFEM rate narrowed to N84.4 per dollar from N141.4 per dollar last weekend.

The above development indicated N45 appreciation for the naira in the parallel from N1,655 per dollar last week Monday.

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Similar in the official market, the Naira appreciated by N37.9 from N1,533.5 last week Monday.

Currency traders confirmed to Vanguard that the weak dollar demand driving the Naira appreciation is occasioned by the Chinese New Year holiday as well the market response to the launch of the foreign exchange code by the Central Bank of Nigeria, CBN last week.

A top official of the Association of Bureaux De Change Operators of Nigeria, ABCON, who confirmed this development, added that some currency traders with significant dollar holdings sold in expectation of the fall in demand and exchange rate, boosting supply into the market.

Vanguard investigation also revealed another boost to dollar supply from banks.
According to a top bank official, banks are now honouring customer requests for Personal Travel Allowance, PTA, and Business Travel Allowance, BTA.

The official added this started last week adding that before then, most banks seldom honour these requests.