Naira appreciates further to N305/$

The naira continued its appreciation against the dollar in the parallel market Wednesday, as the parallel market exchange rate dropped further to N305 per dollar. Thus the naira has appreciated by N70 against the dollar in three days in the parallel market. The parallel market exchange rate, which rose to N400 per dollar last Thursday, dropped and closed the week at N375. Bureaux De Change operators who spoke to Vanguard yesterday said that they bought from customers at N270 per dollar but sold at average of N305 per dollar. An Abuja based BDC who spoke to Vanguard on condition of anonymity said the wide gap between the buying rate and selling rate was due to attempt by operators to minimise their loss. He said, “People had bought when the rate was N370, and they are already making loss. But by combining dollars bought at N270, the average buying rate becomes N320. So at N305, they are still losing about N15 per dollar.” Also confirming this development to Vanguard, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe said, “We have instructed our members to buy within the regulated exchange rate in the economy.” ABCON on Tuesday had dissociated itself from the recent depreciation of the naira from N265 per dollar to N400, saying the depreciation was not caused by BDCs. To address the situation and enhance transparency in the market, the Association said it would introduce a weekly exchange rate band to guide BDCs and members of the public. Speaking at the press conference, Gwadabe said, “On the part of ABCON, as a way of enhancing transparency in the BDC subsector, we have decided to introduce weekly foreign exchange rate band. This will serve as a guide to all BDCs and members of the public on the prevailing exchange rate across the country. The Rate Band will be operated in line with the regulated foreign exchange rate in the economy. This is to forestall exploitation of foreign exchange end users, and also to ensure that end users are informed enough to avoid falling victims of exploitation. The Rate band will be announced via weekly press release that would be circulated to the media for publication.”

source: Vanguard



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