Naira Gains More Value And Trades For N1,250 To Dollar

ON Monday, April 1, the value of the naira increased to N1,250 to the US dollar at the parallel segment of the foreign exchange market.

The Bureau de Change (BDC) operators in Lagos state set the buying rate of the dollar at N1,230 and the selling price at N1,250, leaving a profit margin of N20. This is a 0.43 percent increase in the foreign exchange rate from the N1,280 recorded on March 29.

“The dollar keeps declining and it is affecting business but business is picking up gradually,” a currency dealer stated.

The local currency fell by 0.69 percent to N1,309.39 to a dollar on March 28 at the official part of the foreign exchange market, from N1,300.43 to a dollar on March 27.

On March 31, Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), stated that the currency rate had stabilized as a result of members being recalled into the foreign exchange market.

“The reconsideration of the BDCs into the mainstream foreign exchange market has not only cleared illegal economic behaviours of hoarding, rent-seeking, round-tripping, and foreign exchange holding position, and led to the emergence of exchange rate convergence,” Gwadabe stated.

Additionally, he stated that the Central Bank of Nigeria's (CBN) monetary instrument, which increases foreign exchange inflows, increases foreign reserves and gives the central bank the authority to protect the local currency.