Naira Appreciates Against Dollar, Hits N1,500/$ at Parallel Market

The Nigerian Naira has extended its winning streak in the parallel section of the foreign exchange (FX) market, trading at an impressive N1,500 against the US dollar on Wednesday. This surge signifies a notable 9.09 percent gain from the N1,650/$ rate observed just two days earlier.

Bureau de change (BDC) operators, the currency traders in this segment, quoted buying rates at N1,450 and selling prices at N1,500, creating a profit margin of N50.

Simultaneously, at the official window, the naira experienced an uptick, reaching N1609.51 against the dollar on Wednesday. This reflects a 1.67 percent increase from the N1,582.94/$ rate recorded at the beginning of the week.

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), addressed the recent naira appreciation, attributing its undervaluation to distortions caused by certain entities in the foreign exchange market. He emphasized the CBN’s commitment to rectifying these distortions, stating, “We will take them off and throw them away, and where there are distortions resulting from bad behavior, we will ensure that those who engage in it will face the music as a deterrent for the future.”

Cardoso further asserted that such actions by perpetrators only serve to confuse the FX market, and measures will be taken to hold them accountable.