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Naira appreciates to N1,250/$ at parallel market

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On Monday, the naira saw a rise to N1,250 per dollar in the parallel section of the foreign exchange (FX) market, marking a 0.43 percent increase from the N1,280 recorded on March 29.

In Lagos, currency traders, commonly referred to as bureau de change (BDCs) operators, set the buying rate of the dollar at N1,230 and the selling rate at N1,250, yielding a profit margin of N20.

Aliyu, a currency trader, noted the gradual improvement in business amidst the dollar’s continuous decline, stating, “The dollar keeps declining and it is affecting business but business is picking up gradually.”

However, at the official section of the FX market, the naira experienced a 0.69 percent depreciation to N1,309.39/$ on March 28, down from N1,300.43/$ on March 27.

Aminu Gwadabe, president of the Association of Bureau de Change Operators of Nigeria (ABCON), emphasized on March 31 that the return of BDCs to the FX market has contributed to stability in the exchange rate. He highlighted that this move has curbed illegal economic behaviors and led to exchange rate convergence. Additionally, Gwadabe pointed out that the increase in FX inflows through the CBN’s monetary tools has bolstered foreign reserves, empowering the apex bank to defend the local currency.

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