Naira records significant gain against the dollar at black market 

Naira records significant gain against the dollar at black market 

 

The Naira recorded a whopping 6 percent gain against the dollar on Friday, a rare feat since the Central Bank of Nigeria (CBN) floated the currency to find its original value. 

According to data from currency traders on the street of Lagos, the naira appreciated N1,230 to a dollar, from N1,315 the exchange rate for the previous day. This represents an appreciation of N85 or 6.5 percent.

According to an online newspaper, The Cable, some Bureau De Change operators (BDCs) in Lagos said they were willing to buy a dollar at N1,200 and sell at the rate of N1,230/$ — resulting in a profit margin of N30.

At the official market, the local currency however depreciated by N36.39 or 4.54 percent, from N801.10/$ on Wednesday, to close at N837.49/$ on Thursday.

According to details on FMDQ Exchange, a platform that oversees official foreign exchange trading in Nigeria, the exchange rate recorded a high of N891 and a low of N701. 

The development comes a few days after an announcement by Wale Edun, minister of finance and coordinating minister of the economy, that Nigeria is expecting $10 billion in foreign currency inflows in the next few weeks to ease liquidity in the FX market. 

This followed President Bola Tinubu’s assurance that crucial plans were underway to improve foreign exchange liquidity.

On its part, the Central Bank of Nigeria (CBN) said it would provide forex from time to time to back the naira.