In a significant turnaround, the Nigerian naira continued its impressive rebound against the US dollar on Friday, reaching an average exchange rate of N950/$ in the parallel market.
This remarkable surge represents a remarkable N170 gain or a 15.18 percent appreciation of the local currency when compared to the N1,120 it traded for just a day prior, on Thursday.
This positive momentum marks the second consecutive day of recovery for the naira following a strategic intervention by the Central Bank of Nigeria (CBN) to address its foreign exchange (FX) backlog.
Bureaux De Change operators, who shared insights with The PUNCH, have reported that the naira’s ascent is still on an upward trajectory, with the market responding favourably to the CBN’s recent actions.
One trader, identified only as Awolu, declared, “The dollar is available at N950 today for those looking to purchase it.”
Another trader named Kadri disclosed that he currently buys at N900/$ and sells at N950, underscoring the apparent reduction in the dollar’s value. Kadri stated, “The dollar’s value is gradually decreasing; it’s N900 if you want to sell, but N950 if you’re looking to buy.”
Taura, another currency trader, indicated that in his region, the naira was trading at N1,015/$. He explained, “If you want to sell, it is available at N980, but for those looking to buy, the rate is N1,015.”
Muhammad chimed in, stating, “The naira’s value is experiencing a noticeable decline; it is currently at N970, and the difference between the buying and selling rates is N10.”
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Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria, affirmed on Thursday that the CBN’s move to clear its FX backlog has played a pivotal role in stabilising the naira.
He expressed, “Yes, this is because of the CBN’s move to clear its backlogs. There is a positive signal in the market, and the CBN should continue to provide clarifications.”
In a recent development, the CBN has begun paying off outstanding matured FX forwards to various creditors. While unconfirmed sources have indicated that three banks, namely Citi Bank, Stanbic IBTC, and Standard Chartered Bank, have received full payment for their debts owed by the CBN.