Naira Strengthens to N1,280 per Dollar at Parallel Market Amid Currency Concerns

The Nigerian naira witnessed an upturn on Friday, appreciating to N1,280 per dollar in the parallel section of the foreign exchange (FX) market. This latest exchange rate reflects a notable 5.19 percent increase from the N1,350/$ rate recorded on March 27.

Currency traders, commonly known as bureau de change (BDCs) operators, in Lagos quoted the buying rate of the dollar at N1,260 and the selling price at N1,280, maintaining a profit margin of N20. However, some traders expressed concerns about declining demand, attributing it to the falling prices of major currencies.

Aliyu, a currency trader, remarked, “The price of the dollar as well as other major currencies have been falling. It is affecting our business as some customers prefer to keep their currencies than change it with us.”

Conversely, at the official section of the FX market, the naira experienced a slight depreciation of 0.69 percent, settling at N1,309.39/$ on March 28, down from N1,300.43/$ on March 27.

In a separate development, the Central Bank of Nigeria (CBN) announced on March 29 that the economy had seen over $1.5 billion in foreign exchange (FX) inflow during the month, signaling the effectiveness of its monetary policy initiatives. The CBN reiterated its commitment to maintaining market stability and ensuring appropriate pricing of the naira against other major currencies worldwide under the leadership of Yemi Cardoso, the CBN governor.