According to recently published reports, the value of the Naira has increased in comparison to that of the dollar.
On Wednesday, the parallel portion of the foreign currency market witnessed higher liquidity, which contributed to an appreciation of the naira when measured against the dollar.
Bureaux de Change (BDC) operators in Lagos, Nigeria, who spoke with The Cable and are often known as “aboki,” estimated that one dollar could be purchased with 825 nairas.
When compared to the price of N885 that it was trading at on Monday, this number implies an increase of N60 or 6.8 percent.
Check the Rate of Exchange Tonight As the Naira Continues to Appreciate at the Parallel Market. Naira, faced severe pressures last week
The market participants estimated that the cost to acquire a dollar would be N790, while the cost to sell it would be N825, resulting in a profit margin of N35.
“The value of the dollar is decreasing. It may go down to N800 soon. In the Victoria Island neighborhood of Lagos, where TheCable is based, a BDC operator shared with us that “there is plenty of dollars in the market presently for people to buy.”
Behavior that is not in accordance with the regulations established by an institution is indicative of a parallel (street or black) market.
Since abokiFX suspended trading information, citizens have been forced to rely on street merchants to obtain information regarding the most recent prices of the local currency on the market.
However, the Central Bank of Nigeria (CBN) has always maintained that the parallel market accounts for less than one percent of foreign exchange (FX) transactions and must under no circumstances be utilized to establish the value of the naira.
According to the information provided by FMDQ OTC Securities Exchange, the official market for the local currency experienced a depreciation of 0.13 percent on Tuesday, bringing the closing price to N446.10. This exchange serves as the platform that monitors the official trading of foreign currency in Nigeria.
Throughout the course of the day’s trade, the exchange rate fluctuated widely, reaching a high of N460 to the dollar before finally settling at N446.10.
During the course of the day’s trade, it was sold for a price that was as low as N440 to the dollar. At the official investors and exporters window, often known as the I&E window, a total of $72,69 million was transacted in foreign currency.
