The Naira experienced a positive uptick, reaching N1,250 per dollar at the parallel segment of the foreign exchange (FX) market, marking a 0.43 percent increase from the N1,280 recorded on March 29. Currency traders, commonly referred to as bureau de change (BDCs) operators in Lagos, quoted the buying rate of the dollar at N1,230 and the selling price at N1,250, indicating a profit margin of N20.
Aliyu, a currency trader, noted the impact of the dollar’s decline on business activities, although he observed a gradual improvement in business conditions amidst the ongoing currency fluctuations.
In contrast, at the official FX market, the naira witnessed a depreciation of 0.69 percent to N1,309.39 per dollar on March 28, down from N1,300.43 per dollar on March 27. Aminu Gwadabe, the President of the Association of Bureau de Change Operators of Nigeria (ABCON), highlighted on March 31 that the reintroduction of BDCs into the mainstream FX market has fostered stability in the exchange rate.
Gwadabe emphasized that this move has curbed illicit economic practices such as hoarding, rent-seeking, and round-tripping, leading to exchange rate convergence. He further attributed the increase in FX inflows through the Central Bank of Nigeria’s (CBN) monetary tools to the bolstering of foreign reserves, thereby empowering the apex bank to safeguard the value of the local currency.