Naira extends dip at parallel market, appreciates at official window

The naira depreciated at the parallel section of the foreign exchange (FX) market on Monday. 

At the Lagos street market, currency traders, also known as bureau de change (BDC) operators, quoted the naira at N1,520 to the greenback.

The traders put the buying price of the dollar at N1,490 and the selling price at N1,520 — leaving a profit margin of N30.

The figure represents a decline of N10 or 0.66 percent from the N1,510/$ traded on May 24.

However, in the official market, the naira appreciated by 9.6 percent or N143 to N1,339.33/$ on Monday — from N1,482.81/$ on May 24.

According to FMDQ Exchange, a platform that oversees official FX trading in Nigeria, during trading hours, N1,501/$ was the highest exchange rate and N1,310/$ was the lowest.

At the official window, a daily turnover of $180.80 million was recorded.

The Association of Bureau De Change Operators of Nigeria (ABCON), on May 23, said the weakening of the naira is caused by the unearned income pursuing the local currency and not due to demand for the dollar.

Aminu Gwadabe, president of ABCON, also said corruption, not BDCs, is responsible for the depreciation of the naira.