Naira appreciates to N737/$ at parallel market as dollar demand slows

The naira, on Wednesday, appreciated to N737 per dollar at the parallel section of the foreign exchange (FX) market, popularly called the black market.

The figure indicates a N9 or 1.2 percent gain compared to the N746 it traded three weeks ago.

The currency had maintained stability against the U.S dollar in the past couple of weeks at N745/$- N746/$ before its recent appreciation.

Speaking to TheCable in the Victoria Island area of Lagos, Bureaux De Change operators (BDCs) said they purchase the greenback at N730/$, make a gain of N7 and then sell at N737/$.

The street traders attributed the appreciation of the local currency to low demand for dollars by customers.

Also, the naira gained 0.08 percent to close at N462.88/$ at the investors and exporters (I&E) forex window on Tuesday, according to data published by FMDQ, a platform where FX is officially traded.

The data also showed that forex worth $80.90 million were transacted among market dealers.

The Central Bank of Nigeria (CBN) has continued to intervene in the official forex market from the external reserve in order to maintain the stability of the naira.

Recently, the World Bank, in its outlook for 2023, said the economic slowdown in developing countries such as Nigeria would persist for years due to inflation, currency depreciation, rising debt service costs, and the collapse of international reserves.

In February, Nigeria’s inflation rate surged to 21.91 percent, up from 21.82 percent in the previous month.