Naira gains at parallel market, sells for N1,250/$

Naira gains at parallel market, sells for N1,250/$

The naira continued its gain on Monday over the United States dollars at the parallel section of the foreign exchange (FX) market as it traded for N1,250/$.

This is a 0.43 percent increase over the N1,280 recorded on March 29.

Currency traders in Lagos, also known as bureau de change (BDCs) operators, gave the buying rate of the greenback as N1,230 and the selling price, N1,250 — leaving a profit margin of N20.

At the official section of the FX market, the local currency depreciated by 0.69 percent to N1,309.39/$ on March 28 — from N1,300.43/$ on March 27.

President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, on March 31, said the recall of members into the FX market has led to stability in the exchange rate.

“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, and led to the emergence of exchange rate convergence,” he said.

Gwadabe also said the increase in FX inflows through the CBN’s monetary tools had boosted foreign reserves, granting the apex bank the power to defend the local currency.