JUST IN: Naira Gains Massively As CBN Quotes New Rate Of N1190 To Sell Dollar To BDCs—Bureau de Change (BDC) operators have explained the rationale behind the consistent rise in the local currency.
They attributed this to the cheap dollar rate that members get from the Central Bank of Nigeria.
This occurred as the naira continued its upward trend against the US dollar on Wednesday, strengthening at both the official foreign exchange and black market markets. The dollar was quoted at N1,262.85/$ stronger than N1,278.58 closed on Tuesday, indicating that the naira gained N16, or 1.26 per cent, at the Nigerian Autonomous Foreign Exchange Market, according to statistics from the FMDQ Securities Exchange.
The appreciation of the local currency was attributed to the several foreign exchange policies implemented by the Central Bank of Nigeria to boost the dollar supply and enhance transparency in the FX market. One of the most recent actions is the commencement of dollar sales by the CBN to the Bureau de change at a cheaper rate. Legit.ng reported that the apex bank pegged a new round of $10,000 forex sales to licenced Bureau De Change (BDC) operators at N1,251/$1 based on a circular released on March 25.
However, in a new development, it appears the CBN has again slashed the rate at which it sells one dollar to the operators. The Punch reported that the BDC operator at Wuse Zone 4, Ibrahim Yahu, associated the demand for dollars with the new rate determined by the CBN for traders.
“The CBN initially started selling to us at N1,251 but they gave another rate last week Thursday at N1,190 and that is the reason for new fresh drop of the dollar. The CBN selling directly to us has really helped trading activities.”
The average daily turnover reportedly increased to $116 million from $111.8 million. The value of the naira against the dollar has increased by 46% since February 20, 2024, when it was at its lowest on the parallel market, N1,825/$.
Newsmen reported that the naira appreciated in the parallel market on Friday, March 29, 2024, to trade at N1,280 per dollar. The development means the Nigerian currency appreciated by 5.19% from the N1,350 per dollar traded on March 27, 2024. BDC operators quoted the buying rate of the dollar as N1,260 per dollar and the selling rate as N1,280, making a profit of N20.
