Naira Strengthens To N665/$ At Parallel Market

Written by on August 3, 2022

According to Currency traders known as BDCs in the Ikeja area of Lagos, the buying rate of the greenback at N650 and the selling price at N665 per dollar.

According to them, the gains are influenced by increased dollar liquidity in the market. “Dollar is plenty in the market. Some oil companies also brought out dollars to sell,” a BDC operator said.

On the official market side, the naira appreciated by 0.03 per cent to close at N428.88 to a dollar on Monday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

Last week, operatives of the Economic and Financial Crimes Commission (EFCC) raided Wuse Zone 4, Abuja, over allegations that some BDC operators were mopping up foreign currencies.

President, BDC Operators, Aminu Gwadabe, said the “market surveillance” was done in collaboration with the association.

“We have a cordial relationship with the security agencies and ongoing collaboration with the agencies on the exchange rate issues,” he said.

The Central Bank of Nigeria (CBN) regularly intervenes in the official foreign exchange market to maintain stability.

Last week, spokesperson of the CBN, Osita Nwasinobi, said the apex bank would continue to make efforts in the forex sector to avoid further downward slides in the value of the naira.

He further advised forex buyers not to succumb to speculative activities of some players in the FX market to save the naira from further decline.

(Economic Confidential)

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