The Nigerian naira witnessed a significant appreciation to ₦1,150 per dollar at the parallel section of the foreign exchange (FX) market on Friday.
Currency traders, commonly known as bureau de change (BDCs) operators, quoted the buying rate of the greenback at N1,110 and the selling price at ₦1,150, indicating a profit margin of N40.
This appreciation marks a notable 0.86 percent increase from the ₦1,160 recorded on April 11, showcasing the strengthening of the local currency.
Lawal, a BDC operator, commented on the current FX market dynamics, stating, “The dollar is falling, and it is not my fault. It is how the FX market is now.”
In a similar vein, FMDQ Exchange, overseeing official foreign exchange trading in Nigeria, reported a 7.16 percent appreciation of the naira, rising by ₦88.23 to N1,142.38/$ on Friday from ₦1,230.61/$ on Monday.
The appreciation of the naira follows the recent opening of the third tranche of sales to BDC operations by the Central Bank of Nigeria (CBN). The apex bank commenced the sale of foreign exchange to BDC operators at the rate of ₦1,101/$ on April 8.
Furthermore, the CBN, on the same day, directed all banks to halt the use of foreign currency-denominated collaterals for naira loans, indicating a strategic move to shore up liquidity and strengthen the naira.
In a related development, Goldman Sachs Group Inc. projected earlier today that the naira could continue its appreciation trend, potentially trading below ₦1,000 to the dollar.
