Some Bureau de Change Operators report that on Wednesday, the naira traded at 1,185/$ on the parallel market due to ongoing liquidity issues.
According to several BDC operators who spoke with the media, the local currency hasn’t yet reached its full value, therefore this is a minor improvement over Tuesday’s trade of 1,190/$.
The naira was purchased and traded on Wednesday at 1,170/$ and 1,175/$; 1,510/£ and 1,550/£; and €1,280 and €1,300, according to figures received from AbokiFX.
Jubril Mutiu, a BDC operator, stated, “We sold the naira at 1,185/$ today, it was 1,190/$ yesterday; we are buying at 1,175/$ today.”
Ismail Ahmed, a different BDC operator, stated, “There is still a scarcity challenge. We are buying and selling at 1,180/$ and 1,200/$. It was cheaper last weekend, but it has gone up because of scarcity.”
The naira last week peaked on Tuesday at 1,310/$ and ended the week at 1,150/$ on the parallel market.
Noting the recent progress, the Nigerian Association of Bureau De Change Operators offered advice on maintaining the gain.
According to the President, ABCON, Dr Aminu Gwadabe, “While these positive impacts might be in the short run and to ensure continuity, there is the need to implement the democratisation and centralisation of the foreign exchange market and leverage on the BDCs moderating and correcting roles of the foreign exchange market.”
On the other hand, the naira started trading at 798.75/$ on the Investor & Exporter FX window and reached a high of 1,101/$ before ending at 786.02/$ on Wednesday.
According to data gathered from the FMDQ, it had previously closed at 905.75/$ on the official trading platform on Tuesday.
However, after the close of Wednesday’s trading, the I&E window had a total turnover of 105.98m.
Cordros Research analysts claimed that: “The incentives for holding the naira continue to be limited by the day, coupled with the panic-buying arising from the expectations of further currency pressures amidst limited FX supplies.
“Consequently, barring any significant FX inflows or convincing action by the policymakers to turn the tide, we expect the exchange rate pressures to linger in the short term.”
