Naira appreciates to N695/$ at parallel market

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  The naira, on Monday, appreciated against the dollar at the parallel section of the foreign exchange market.   The Cable speaking to a…

 

The naira, on Monday, appreciated against the dollar at the
parallel section of the foreign exchange market.

 

The Cable speaking to a Bureaux De Change (BDC) operators,
popularly known as ‘abokis’ in Lagos, quoted the naira at N695 to a dollar.

 

The figure represents a gain of N12 or 1.7 percent compared
to the N707 it traded last week.

 

The traders put the buying price of the dollar at N680 and
the selling price at N695, leaving a profit margin of N15.

 

They attributed the appreciation in the value of the naira
to the adequate availability of dollars in the market to meet demand.

 

“The rates have been dropping. Some people have bought
dollars from different states like Kano where it is cheap. They brought it to
Lagos. Now, we have more dollars in the market compared to last week,” Musa, a
BDC operator, he said.

 

A parallel (street/black) market is characterised by
noncompliant behaviour with an institutional set of rules.

 

The Central Bank of Nigeria (CBN) stopped forex sales to BDC
operators in July last year, accusing them of being involved in illegal
financial flows and money laundering in Nigeria.

 

Recently, the Economic and Financial Crimes Commission
(EFCC) raided a BDC hub in Abuja over allegations that some operators are
mopping up foreign currencies.

 

According to reports, the invasion was a covert operation to
“dislodge currency speculators who are alleged to be massively mopping up
available foreign currencies”.

 

Meanwhile, the local currency fell by 0.66 percent at the
official market to close at N429 on Friday, according to details on FMDQ OTC
Securities Exchange — a platform that oversees official foreign-exchange
trading in Nigeria.

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