By Dipo Olowookere
The value of the Naira to the United States Dollar on the streets in Lagos appreciated by 10 on Easter Monday, selling at N1,270/$1 compared with Saturday’s rate of N1,280/$1.
Business Post reports that the appreciation was influenced by lesser demand for dollars at the parallel market yesterday, which was a public holiday in Nigeria.
Most of the foreign exchange (FX) traders in the black market were not busy on Easter Monday due to the work-free day, and did not have much to do.
However, the activities are expected to be busy on Tuesday (today) after the holidays, and the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), will resume today.
The Naira has been on an upward trajectory in the past weeks as a result of some policy reforms of the Central Bank of Nigeria (CBN), including the resumption of FX sales to Bureaux De Change (BDC) operators.
Even the Association of Bureaux de Change Operators of Nigeria (ABCON) said this singular decision of the apex bank has returned stability to the market.
“The reconsideration of the BDCs into the mainstream foreign exchange market has not only demystified illegal economic behaviours such as hoarding, rent-seeking, round tripping and FX holding position but also led to the emergence of exchange rate convergence,” the President of ABCON, Mr Aminu Gwadade, said.
“The current developments in the foreign exchange market have started reigning in inflation as prices of most necessities are becoming relatively lower in the market. On a most serious note, the positive impacts include also heightened the confidence of the public in the local currency as it eliminates currency substitution behaviour which hitherto being adding pressure on our local currency,” he noted.
