the naira saw a 1.88 percent appreciation on Wednesday, reaching N1,570 at the parallel segment of the foreign exchange (FX) market. This positive shift marks a significant improvement from the N1,600/$ rate recorded on March 11.
Lagos-based currency traders, commonly known as bureau de change (BDC) operators, set the buying rate of the greenback at N1,550, with a selling price of N1,570, resulting in a profit margin of N20.
Conversely, at the official FX market, the local currency experienced a 0.78 percent depreciation, settling at N1,615.94/$ on Wednesday, down from N1,603.38/$ on March 12.
According to data from FMDQ Exchange, the platform overseeing official FX trading in Nigeria, the naira’s trading range was between N1,500 and N1,635. Additionally, FMDQ reported a significant surge in daily FX turnover, jumping by 103.59 percent to $248.75 million, compared to the previous trading day’s $122.18 million.
The federal government, on March 13, highlighted the potential of increased oil production to bolster dollar reserves without triggering inflation. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, noted that crude oil output had risen to 1.65 million barrels per day (bpd), up from 1.25 million bpd in June 2023.
Edun emphasized, “Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary.” He also underscored the importance of increased oil revenue in funding critical infrastructure projects.