Naira gains N10 against Dollar, edges closer to N350/$1 at parallel market

The Nigerian Naira on Thursday, March 23, edged closer towards N350 per Dollar at the parallel market otherwise known as black market.

This follows reports that the local currency now trades at 380 to 400 against the US Dollar as it also appreciated to 500 and 430 against Pound sterling and Euro respectively.

According to Yahya Mohammed, a trader, the new development has raised optimism that Naira could sell for N350 against the Dollar tomorrow.

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Meanwhile, the new development has put the BDC sub-sector into a very tight corner as some of their clients were no longer comfortable with the prevalent rate.

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators (ABCON), said BDCs were facing increasing resistance from their clients.

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“Some of them insist they can only patronise us at N375 to a dollar,’’ he said.

Legit.ng recalls that the Central Bank of Nigeria has been intervening on the official market to try to narrow the currency spread with the black market rate, which was 520 to the dollar a month ago.

The Apex bank sold $1.5 million on Wednesday, March 22, at 307.75, weaker than the 307.50 it intervened previous session.

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), said that the bank was optimistic to see the further convergence of the official and parallel market rates.

Emefiele said this while fielding questions from newsmen at the end of the two- day Monetary Policy Committee (MPC) meeting of the CBN in Abuja.

“We are determined to see a greater convergence of the official and parallel market rates,’’ he said.

Source: Legit.ng