Naira Bounces Back, Gains Over N100 Against Dollar in Black Market, Traders Quote New Exchange Rate
- The value of the Nigerian currency recovered in the unofficial foreign exchange market over the weekend
- The naira showed a strong performance amid concerns expressed by lawmakers in the Senate and Nigerians
- The Association of Bureau de Change Operators of Nigeria has proffered solutions to halt the depreciation of the naira
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira again appreciated against the US dollar in the black market, also known as the parallel foreign exchange markets.
Bureau de Change traders who spoke to Legit.ng said the naira's value on Monday, April 29, 2024, stands at N1,275 against the US dollar.
Source: Getty Images
This represents a N125 or 9.8% appreciation when compared to N1,400 to a dollar it traded at the close of trading activity on Friday, April 26, 2024.
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A BDC Abdullahi explained the performance:
"The market is difficult to understand and predict; there is so much uncertainty in the foreign exchange market. Buying and selling dollars is now very risky because you cannot tell if you are going to make a loss or gain when you buy or sell.
"Right now we buy at 1,250 and sell at N1,275."
Also, checks by Legit.ng on various fintech platforms such as Chipper Cash showed that on Monday, April 29, Nigerians in need of dollars will pay N1,513, while the withdrawal exchange rate is set at N1.299.
ABCON makes move to help naira
On its part, ABCON President, Aminu Gwadabe has promised to tackle volatility and boost regulatory compliance within that segment of the market, Punch reports.
He said:
“Part of our vision for a united retail-end forex market includes activating geo-mapping and automated BDCs physical office verification exercise using the Remote Gravity Physical verification apps.
"This will enable forex buyers to easily locate BDCs offices for effective and seamless transactions.”
Senate expresses concerns for naira
Meanwhile, on Sunday, April 28, the Nigerian Senate reacted to the depreciation the naira, against major foreign currencies.
The Senate through its Committee on Finance, called for concerted efforts by all relevant stakeholders to rescue and sustain its stability.
A statement issued on Sunday, the Chairman of the Committee, Senator Sani Musa ( APC Niger East), reads:
"The recent depreciation of the naira underscores the need for proactive measures to safeguard the stability and resilience of our currency.
"Despite efforts to stabilize and bolster economic growth, the numerous initiatives, and bold yet necessary steps and policy decisions taken by President Bola Tinubu, the persistent depreciation of the Naira against major foreign currencies has become a pressing concern.
"The recent depreciation of the Naira underscores the need for proactive measures to safeguard the stability and resilience of our currency."
CBN sells dollars to BDC operators
Legit.ng reported that the Central Bank of Nigeria has part of its efforts to fight naira depreciation conducted another round of dollar sales to licensed Bureau De Change Operators.
The sale is part of the apex bank's plan to ensure enough liquidity in the market and stabilise the currency.
The CBN has also fixed an exchange rate limit for the BDCs when selling to Nigerians seeking dollars.
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Source: Legit.ng
