Naira and Dollar

OBINNA EZUGWU

The Nigerian naira on Tuesday, appreciated significantly against the US dollars at the parallel market, closing at N490/$1 as the Central Bank’s new policy on diaspora remittances appear to be having a significant impact on the market

In the amended procedures for receipt of diaspora remittances, the recipients are allowed to collect dollars and can sell at the black market in an apparent attempt to improve liquidity in the forex market and reduce the disparity between the black market and official market.

Information from Abokifx – a prominent FX tracking website, at the black market where forex is traded unofficially, the Naira appreciated against the dollar to close at N490/$1 on Tuesday, and has remained the same in the early hours of Wednesday.

Exchange rate as at 6:40 am
Exchange rate at Abikifx, 6:40am, Wednesday December 2

This represents a N10 gain when compared to the N500/$1 that it exchanged for on Monday, November 30.

Meanwhile, forex turnover rose significantly by 379.6%, as the naira’s exchange rate at the NAFEX window depreciated against the dollar to close at N394/$1 during intra-day trading on Tuesday.