Naira Appreciates to N891.90/$1 at Official Market

On January 26, 2024, the Nigerian Naira experienced a gain against the US Dollar at the official market, closing at N891.90 to a dollar.

This marked a 1.02 per cent appreciation compared to the previous day’s closing rate of N900.96. The intraday high and low were recorded at N1421/$1 and N700/$1, respectively, showcasing a wide spread of N721/$1.

Data from the NAFEM (official forex trading platform) indicated that the forex turnover at the close of the trading day was $100.97 million, representing a 12.35 per cent decrease from the previous day.

However, the Naira closed flat at the parallel forex market, maintaining an exchange rate of N1410/$1, the same as the previous day. Peer-to-peer traders quoted around N1422.98/$1.

Efforts are underway to authorize the Association of Bureau De Change Operators of Nigeria (ABCON) to publicly display black-market rates of the Naira against the Dollar on online platforms.

ABCON President, Aminu Gwadabe, mentioned that the association is proposing to regulators to allow BDCs to restart the public display of exchange rates.

This move signals a departure from previous measures that strictly regulated BDC operations and aimed to reduce the prominence of the unofficial market.

It’s worth noting that the Central Bank of Nigeria had previously taken action against platforms like AbokiFX, which published black market exchange rates for the Naira online, citing allegations of involvement in activities undermining the economy.

The move to potentially allow BDCs to display rates publicly could mark a shift in policy regarding the visibility of parallel market rates.