Gap between parallel, official FX rates drops to N22 as naira extends gains

The naira, on Wednesday, appreciated to N1,050 at the parallel section of the foreign exchange (FX) market.

The current FX rate at the street market signifies an increase of 4.55 percent or N50 from the N1,100/$ value traded on April 15.

Speaking to TheCable in Lagos, currency traders, known as bureau de change (BDC) operators, quoted the buying price of the dollar at N1,020 and the selling price at N1,050 — leaving a profit margin of N30. 

“At the moment, I believe the naira will keep appreciating as the Central Bank of Naira (CBN) is doing everything to make sure we get dollars at a good price,” Aliyu, a BDC operator, said.

Also, FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, said the local currency rose by 6.56 percent to N1,072.74/$ on Wednesday — from N1,148.14/$ on April 16.

The gap between the official window and the parallel market shrinked to N22.74, from N48.14.

Meanwhile, on April 15, Nigeria’s foreign reserves fell to $32.29 billion on April 15 — the lowest level in over six years.

The development brought to an end, a period of steady increase between February 5 and March 18, when the FX reserves rose by $1.28 billion.