Naira strengthens to N665/$ at parallel market

The naira yesterday sustained its momentum at the parallel market, appreciating to N665 per dollar a few days after security operatives raided the Bureaux De Change (BDC) hub in Abuja.

The development represents N30 or 4.3 per cent gain compared to the N695 to a dollar recorded the day before.

Currency traders known as BDCs in the Ikeja area of Lagos, quoted the buying rate of the greenback at N650 and the selling price at N665 per dollar.

According to the traders, the gains are influenced by increased dollar liquidity in the market. “Dollar is plenty in the market. Some oil companies also brought out dollars to sell,” a BDC operator said.

On the official market side, the naira appreciated by 0.03 per cent to close at N428.88 to a dollar on Monday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

Last week, operatives of the Economic and Financial Crimes Commission (EFCC) raided Wuse Zone 4, Abuja, over allegations that some BDC operators were mopping up foreign currencies.

“The raid by EFCC in Abuja BDCs last week dampened demand. There were so many buyers last week that had to queue up. The situation tells you that if you allow the market to work, it will find its level. We were blaming aboki fx before,” a source said.

President, BDC Operators, Aminu Gwadabe, said the “market surveillance” was done in collaboration with the association.

“We have a cordial relationship with the security agencies and ongoing collaboration with the agencies on the exchange rate issues,” he said.

The Central Bank of Nigeria (CBN) regularly intervenes in the official foreign exchange market to maintain stability.

Last week, spokesperson of the CBN, Osita Nwasinobi, said the apex bank would continue to make efforts in the forex sector to avoid further downward slides in the value of the naira.

He further advised forex buyers not to succumb to speculative activities of some players in the FX market to save the naira from further decline.