The naira appreciated further in the parallel market, popularly called black market, on Thursday, a day after the Central Bank of Nigeria (CBN) issued new directives on the purchase of dollars by the Bureau De Change (BDCs).
The naira strengthened by ₦15/$1, on Thursday as the dollar was quoted at ₦1,570, marking a 0.95 percent gain against ₦1,585 quoted on Wednesday in the black market.
One street trader who gave his name as Mohammed said there was low activity in the market due to low demand for the dollar.
“We have enough dollars but the demand is low,” Mohammed said.
On Wednesday, the apex bank issued new directives, which allows authorised dealers to sell foreign exchange cash to BDCs subject to a maximum of $25,000.00 to a BDC per week.
The new regulation aims to enhance tracking, transparency, and anti-money laundering efforts in the foreign exchange market operated by BDCs.
The CBN said foreign exchange cash purchased by BDCs from authorised dealer banks shall be sold to foreign exchange end-users at a rate not exceeding 1 percent margin above the buying rate.
Lydia Shehu Jafiya, member of the Monetary Policy Committee (MPC), said, “in the foreign exchange market, the average naira exchange rate remained stable, albeit high, since June 2024, an indication of strong market recovery, following deliberate policies by the monetary and fiscal authorities to stabilise the market.
In the official FX market, the naira closed flat on Wednesday as the dollar was quoted at ₦1,499.76 compared to ₦1,498.95 quoted on Tuesday, according to data from the FMDQ Securities Exchange Limited.
Consequently, the FX spread or gap between the official and black market has closed by ₦70.24/$.
(BusinessDay)
