On Wednesday November 1, the Naira, Nigeria’s official currency exchanged at 1,185/$ at the parallel market, as liquidity challenge persisted, according to some Bureau de Change Operators.
Some BDC operators said this was a slight improvement from 1,190/$ traded on Tuesday, as the local currency was yet to gain its true value. Figures obtained from AbokiFX said the naira was bought and sold at 1,170/$ and 1,175/$; 1,510/ £ and 1,550/ £; and €1,280 and €1,300 respectively on Wednesday.
A BDC operator, Jubril Mutiu, who spoke with Punch newspaper said, “We sold the naira at 1,185/$ today, it was 1,190/$ yesterday; we are buying at 1,175/$ today.” Another BDC operator, Ismail Ahmed, said, “There is still a scarcity challenge. We are buying and selling at 1,180/$ and 1,200/$. It was cheaper last weekend, but it has gone up because of scarcity.”
Last week, the naira hit a high of 1,310/$ on Tuesday before closing at 1,150/$ at the parallel market on Friday.
The Association of Bureau De Change Operators of Nigeria noted the recent gains and gave suggestion on sustaining the gain. “While these positive impacts might be in the short run and to ensure continuity, there is the need to implement the democratisation and centralisation of the foreign exchange market and leverage on the BDCs moderating and correcting roles of the foreign exchange market,” the President, ABCON, Dr Aminu Gwadabe, said.
However, on the Investor & Exporter forex window, the naira commenced trading at 798.75/$, and rose to a high of 1,101/$ before closing at 786.02/$ on Wednesday.
It had earlier closed at 905.75/$ on the official trading platform on Tuesday according to figures obtained from the FMDQ. The I&E window however recorded a total turnover of 105.98m at the end of Wednesday trading.
Analysts at Cordros Research stated that “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 amidst limited FX supplies.
“Consequently, barring any significant FX inflows or convincing action by the policymakers to turn the tide, we expect the exchange rate pressures to linger in the short term.”
