Parallel market operators are now quoting a buy price of N1400/$1 for individuals looking to sell dollars, indicating a significant strengthening of the naira. Investigations by Daily Trust suggest that the exchange rate has been on the rise recently, with speculators beginning to offload their stock of dollars due to reduced demand.
Sources operating in the parallel market revealed that the naira has appreciated from around N1600/$1, which was its closing rate on Tuesday, to N1500/$1. However, they are purchasing at N1400/$1, allowing them to make a spread of N100/$1.
In the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the exchange rate stands at N1,492, showing an improvement from the N1560.57 to $1 rate recorded on Tuesday. The increased foreign investors’ interest in the Central Bank of Nigeria’s (CBN) Open Market Operations (OMO) auctions and Nigeria’s Treasury bills could be contributing to the recent gains of the naira.
Source: Daily Trust