At the parallel segment of the foreign currency (FX) market, the value of the naira was around N1,250 per dollar at the close of business on Monday.
The FX rate increased by 0.43 percent from N1,280 on March 29.
The purchase rate of the US dollar was stated by currency dealers in Lagos, often referred to as bureau de change (BDC) operators, at N1,230, and the selling price at N1,250, with a N20 profit margin.
“The dollar keeps declining and it is affecting business but business is picking up gradually,” a currency trader named Aliyu said.
At the official section of the FX market, the local currency depreciated by 0.69 percent to N1,309.39/$ on March 28, from N1,300.43/$ on March 27.
Meanwhile, Aminu Gwadabe, president, Association of Bureau de Change Operators of Nigeria (ABCON), on March 31, said the recall of members into the FX market has led to stability in the exchange rate.
“The reconsideration of the BDCs into the mainstream foreign exchange market has not only cleared illegal economic behaviours of hoarding, rent-seeking, round tripping and FX holding position, and led to the emergence of exchange rate convergence,” Gwadabe said.
Gwadabe also said the increase in FX inflows through the CBN’s monetary tools boosts foreign reserves, granting the apex bank the power to defend the local currency.
