Naira Trades N1,280/$1 at Parallel Market After N10 Gain

By Dipo Olowookere

The Nigerian Naira appreciated against the United States Dollar in the parallel market segment of the foreign exchange (FX) by N10 or 0.78 per cent on Friday.

The domestic currency put up a positive performance against the greenback during the session amid an improvement in the supply of forex in the country’s currency market, trading at N1,280/$1 compared with the previous day’s value of N1,290/$1.

It was observed that the black market was not under pressure yesterday as a result of a public holiday declared to celebrate Good Friday, usually celebrated by Christians.

The official market, which is known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), was not operational during the session due to the work-free day declared by the federal government.

The spot market will remain closed next Monday as part of the Easter holidays, though the parallel market will be open to traders and customers in need of FX.

The Central Bank of Nigeria (CBN), under Governor Yemi Cardoso, has made efforts to return stability to the forex market, helping the local currency gain strength in the various segments of the market.

On Thursday, the Naira depreciated against the US Dollar in the official market by 0.7 per cent or N8.96 to sell at N1,309.39/$1 compared with the preceding day’s N1,300.43/$1.

Part of the measures taken by Mr Cardoso to sanitise the forex market was to resume the sale of fore to Bureaux De Change (BDC) operators at a subsidised rate of N1,251/$1, with a mandate for them to sell to customers at a profit margin not more than 1.5 per cent.