Naira gains marginally at N1,490/$ on parallel market

Naira gains marginally at N1,490/$ on parallel market

The naira appreciated further to N1,490 per dollar at the parallel section of the foreign exchange (FX) market on Monday, reflecting a 1.34 percent increase from the N1,510/$ rate recorded on May 17.

Currency traders in Lagos, known as bureau de change (BDC) operators, quoted the buying rate of the dollar at N1,450 and the selling rate at N1,490, yielding a profit margin of N40.

In the official FX market, the naira also appreciated by 1.93 percent, trading at N1,468.99/$ on Monday, compared to N1,497.33/$ on May 17. During intra-day trading, the naira fluctuated, depreciating to as low as N1,550/$ and appreciating to as high as N1,400/$.

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Agora Policy, an Abuja-based think tank, emphasized the need for a temporary dollar liquidity bridge or increased FX inflows to support the Central Bank of Nigeria’s (CBN) orthodox reforms. The think tank suggested that measures such as eurobond issuance, asset sales, and engaging multilateral agencies could help boost dollar inflows into Nigeria.

In the medium term, Agora Policy recommended that Nigeria prioritize restoring organic dollar flows from oil exports by addressing the backlog of encumbrances.

The organization also highlighted the importance of balancing exchange rate stability, which is crucial for controlling near-term inflation, with enhancing non-mineral export competitiveness in Nigeria’s small open economy.

Naira gains marginally at N1,490/$ on parallel market