Naira falls to N1,500/$ on parallel market

Naira falls to N1,500/$ on parallel market

On Wednesday, the Nigerian naira dropped to N1,500 in the parallel market.

The rate is 3.45 percent lower than the N1,450 per dollar recorded on Monday.

Currency traders in Lagos, also known as Bureau De Change operators (BDCs), quoted the buying rate of the greenback at N1,490 and the selling price at N1,500 — leaving a profit margin of N10.

At the official window, the local currency appreciated by 1.05 percent to N1,418/$ on Wednesday — from N1,433/$ on Tuesday.

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According to FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, the naira traded as high as N1,510 and as low as N896.28 — with a daily turnover of $203.93 million.

Meanwhile, on February 1, 2024, the Central Bank of Nigeria (CBN), continued its foreign exchange market reforms by removing the limit on the FX rate quoted by international money transfer operators (IMTOs).

“For the avoidance of doubt, by this circular, the cap on allowable limit of -2.5% to +2.5% around the previous day’s closing rate of the Nigerian Foreign Exchange Market is hereby removed,” the apex bank said.

CBN instructed the money transfer operators to quote exchange rates based on the prevailing market rates at the FX market.

Naira falls to N1,500/$ on parallel market