As of yesterday, the naira continued its appreciation against the dollar in the parallel market as the exchange rate dropped further to ₦305 per dollar; now it has strengthened more at ₦290 per dollar
Despite the recently experienced fluidity in the Nigerian currency, visible results to salvage the economy have ranged from one aspect to the other; but most relieving is the consecutive appreciation of the naira at a parallel market value, from ₦305/$1 yesterday to ₦290 at the moment. This gives hope towards the end of sky-rocketing prices for consumer goods in the Nigerian market.
On Wednesday, Bureau De Change operators revealed to the media that they most recently purchased the dollar at ₦270 and sold at ₦305. The financial association makes their dollar procurement within the regulated exchange rate in the economy, thus the margin between the two rates. Explaining it better to Vanguard, a BDC operator had this to say,
“People had bought when the rate was ₦370, and they are already making loss. But by combining dollars bought at ₦270, the average buying rate becomes ₦320. So at ₦305, they are still losing about ₦15 per dollar.”
Going further on the association which denies having anything to do with the naira depreciation, has instead announced the intention to implement regulatory measures to manage the situation and for posterity as well. The BDC operators association have “decided to introduce weekly foreign exchange rate band” which is expected to flow “with the regulated foreign exchange rate in the economy”. The idea is to avert and prevent the exploitation of foreign exchange end users whom were granted Forex allocation by the CBN late last year.
As much as this is great news for Nigerians, they also worry about the sustainability of this goodness for the future, a Nigerian ECO bank analyst makes an assuring statement:
“We expect that the naira would appreciate further. We have always said that what happened last week was purely a speculative attack. Some people felt that if they pushed the naira down to that level, they could force the CBN to devalue, so that when the naira is devalued and the gap widens further, they would now bring out the dollar cash to make a kill.”
See Also: President Buhari Refuses To Devalue The Nigerian Currency – This Is Why