Naira appreciates to N1,400/$ at parallel market, extends decline in official window

The naira, on Thursday, appreciated to N1,400 at the parallel section of the foreign exchange (FX) market. 

The local currency gained 4.45 percent or N130 from the N1,530 traded on Wednesday.

The recovery of the naira at the black market amid the cessation of sales by the Bureau De Change (BDC) operators in Abuja.

The street market traders had stopped operations on Thursday, citing high FX rates which they claimed had become unfavorable for business.

Meanwhile, the naira continued its free fall, dropping to N1,461.90 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) — the official trading window.

This represents a 0.43 percent decline from the N1,455.59 percent recorded on Wednesday. 

The local currency recorded a high of N1,526 and a low of N891, according to data from FMDQ Securities Exchange, a platform that oversees foreign exchange (FX) trading in Nigeria. 

More so, the daily turnover of FX transactions rose to $156.86 million from the $72.33 million traded the previous day.

With the latest value, the gap between the official market and the parallel market now stands at N61.90 — down from the N74.41 recorded the previous trading day.

However, the official market rate still surpasses the black market price.

On Tuesday, the FX rate on the official window had surpassed the parallel market price, but this was reversed on Wednesday, as the naira gained at the close of trading at the NAFEM. 

Speaking at a programme on youth, religion, and the fight against corruption, Vice-President Kashim Shettima described those celebrating the impending implosion of Nigeria’s economy — after the naira depreciated to N1,500 on Tuesday — as clowns. 

Shettima urged Nigerians to work together to revive the economy.