The Naira on Wednesday gained massively against the US dollar.
Findings at several Bureau de Change Operators in Abuja show that Naira exchanged between 750 and 790 to a dollar
The figure represents an appreciation of 60 or 6.3 percent from the N950 it traded last week.……Read Full Story Here………
The rise in the value of the local currency comes on the heels of the meeting between President Bola Ahmed Tinubu and the acting CBN Governor, Mr. Folasodun Shonubi on the valuation of the currency.
The CBN had in June implemented a unification of exchange rates with a view to restoring efficiency to the forex market.
This was however greeted with a free fall of the naira at the parallel market owing to speculative activities while the rate on the official investor and export window has remained fairly stable at 785 naira to the dollar as at the close of trade on Tuesday.
However, checks show that the currency also appreciated at the parallel market in Lagos as it sold for 890 against the US dollar.
One of the Bureau De Change (BDC) operators in the Victoria Island area of Lagos who spoke to newsmen said the naira has been steadily gaining against the US currency at the street market.
They put the buying price of the dollar at N870 and the selling price at N890, leaving a N20 profit margin.
“Dollar has been dropping. Yesterday, I sold it for N930. No matter how the dollar goes up, it always comes back down. That’s how it is,” a currency trader in the Victoria Island market said.
Meanwhile, currency traders in the Agbara area of Ogun state said they are currently buying the local currency at N850/$ and selling it for N860 per dollar.
At the investors and exporters (I&E) forex window, the local currency depreciated by 4.08 percent to close at N774.77/$ on Tuesday , according to details on FMDQ OTC Securities Exchange — a platform where FX is officially traded.
An exchange rate of N799.9 to the dollar was the highest rate recorded within the day’s trading before it settled at N774.77.
The data also showed that forex worth $95.79 million was transacted among market dealers.
Recall that the Central Bank of Nigeria (CBN) said it would take new measures to stabilise the naira against the dollar.
Folasodun Shonubi, acting governor of the CBN, said President Bola Tinubu was worried about the consistent fall of the local currency against the greenback, hence efforts would be made to curb the situation.
“We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply, but are touched by speculative demand from people,” Shonubi said.
“Some of the plans and strategies, which I am not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.
“But my presence here is more about the concerns the president has and his needs to know that we are doing something about it, assurances of which I have given him totally.
“We are doing things which will significantly impact the market in a few days time and we will all see it.”
