Naira appreciates in the parallel market to N1,350/$.

Naira appreciates

Naira appreciates; In the parallel market yesterday, the value of the naira increased from N1,430 per dollar on Monday to N1,350 per dollar.

In a similar vein, the Nigerian Foreign Exchange Market (NAFEM) saw an increase in the value of the naira yesterday, to N1,382.95 per dollar.

NAFEM’s exchange rate dropped to N1,382.95 per dollar from N1,408.04, signaling a N25.09 appreciation for the naira.

At this point, The NAFEM-parallel market price gap rose from N21.96 to N32.95 per dollar on Monday.

FMDQ data shows Naira appreciates 18.28% in a month, from N1,665.50 on Feb 23 to N1,408.04 on Monday.

CBN’s currency reforms caused recent naira appreciation against the dollar.

Consolidation of exchange rate windows, liberalization of the foreign exchange market, clearing up bank and airline FX backlogs, establishment of a Price Verification System (PVS), restrictions on banks’ Net Open Position, elimination of the daily cap on remunerable Standing Deposit Facility (SDF) at N2 billion, and reorganization of the Bureau De Change (BDC) segment are some of the major reforms.

Although, Extra measures aim to foster a market where buyers and sellers actively engage and participate willingly.

Two-way quotes, removal of IMTO remittance margin limits, and BDC reforms aim to enhance price discovery and market stability.

Above all, At a rate of N1,251, the Central Bank of Nigeria (CBN) sold dollars to Bureau De Change (BDC) Operators.

All things considered, BDCs must sell to qualified clients at a rate not exceeding 1.5% above acquisition price per CBN circular.

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