Naira appreciates 6% against dollar, sells at N1,230 in parallel market

The naira appreciated to N1,230 per dollar at the parallel section of the foreign exchange market on Friday.

This represents an appreciation of N85 or 6.5 percent compared to the N1,315/$ it traded on Thursday.

According to some Bureau De Change operators (BDCs) in Lagos, the forex traders said they are willing to buy a dollar at N1,200 and sell at the rate of N1,230/$ — resulting in a profit margin of N30.

Hamuc, a forex trader in the black market, told TheCable that they received a circular that affected the price.

At the official market, the local currency depreciated by N36.39 or 4.54 percent, from N801.10/$ on Wednesday, to close at N837.49/$ on Thursday.

According to details on FMDQ Exchange, a platform that oversees official foreign exchange trading in Nigeria, the exchange rate recorded a high of N891 and a low of N701. 

The development comes a few days after an announcement by Wale Edun, minister of finance and coordinating minister of the economy, that Nigeria is expecting $10 billion in foreign currency inflows in the next few weeks to ease liquidity in the FX market. 

This followed President Bola Tinubu’s assurance that crucial plans were underway to improve foreign exchange liquidity.

On its part, the Central Bank of Nigeria (CBN) said it would provide forex from time to time to back the naira.