Forex: Naira Maintains Strength At N395/$1 At Parallel Market

Nigeria’s currency, Naira has remained at N395/$1 at the parallel market today, August 12, as it was on Thursday, August 11. The Naira which had exchanged at 400/$1 last week, gained strength on Monday, August 8 to trade at N395. It has remained the same until this moment, according to our Lagos Bureau De Change source. However, there are reports that the naira is well on the path to further strengthen next week as banks were set to sell forex to Bureau De Change Operators (BDCs).
licensed members in the parallel market had received signals from banks to fund their accounts in readiness for the sale. The Street Journal can authoritatively report that the Euro now exchanges for N425 while a Pound Streling is exchanged for N507 at the various parallel market.
He said the resumption in dollar sale to BDCs will see the dollar appreciate in all the segments of the forex market. CBN had in January, suspended dollar sales to BDCs due to decline in the country’s foreign exchange earnings, and sharp practices by BDCs. The apex bank however last month floated the naira as it introduced the foreign exchange policy, which allows for the determination of the exchange rate by market forces of demand and supply. But in spite of the policy shift, scarcity of dollar has not allowed naira any respite as demand for dollars always outstrips supply. In 2016, the naira has lost 29.61% of its value on the official market, following the decision of the CBN to allow for a floating foreign exchange regime. .

Author: News Editor

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