Bureau de Change Operators have said that the naira traded at 1,185/$ on Wednesday on the parallel market as the liquidity problem remained.
According to The PUNCH, several BDC owners indicated that although the local currency had not yet reached its actual value, this was a minor increase over Tuesday’s trading of 1,190/$.
The naira was purchased and traded on Wednesday at 1,170/$ and 1,175/$; 1,510/£ and 1,550/£; and €1,280 and €1,300, according to figures received from AbokiFX.
“We sold the naira at 1,185/$ today, it was 1,190/$ yesterday; we are buying at 1,175/$ today,” stated a BDC operator, Jubril Mutiu.
Ismail Ahmed, another BDC operator, stated, “There is still a scarcity challenge.” Between 1,180 and 1,200 dollars, we are buying and selling. Last weekend it was less expensive, but due to scarcity, it has since increased.
The naira last week peaked on Tuesday at 1,310/$ and ended the week at 1,150/$ on the parallel market.
The Nigerian Association of Bureau De Change Operators acknowledged the recent progress and offered advice on maintaining it.
The president of ABCON, Dr. Aminu Gwadabe, stated, “While these positive impacts might be in the short run, there is the need to implement democratization and centralization of the foreign exchange market and leverage on the BDCs moderating and correcting roles to ensure continuity.”
On the other hand, the naira opened trading at 798.75/$ on the Investor & Exporter FX window and reached as high as 1,101/$ before closing at 786.02/$ on Wednesday.
According to data from the FMDQ, it had earlier ended at 905.75/$ on the official trading platform on Tuesday.
But by the close of Wednesday’s trading, the I&E window had registered a total turnover of 105.98 million.
“The incentives for holding the naira continue to be limited by the day, coupled with the panic-buying arising from the expectations of further currency pressures midst limited FX supplies,” Cordros Research analysts said.
“Therefore, we anticipate that exchange rate pressures would persist in the near term until there are any sizable foreign exchange inflows or the policymakers take strong measures to reverse the trend.”