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Naira appreciates at parallel market

Naira value

The naira was strengthened today as it appreciated against the dollar in the parallel market.

According to information from Aboki fx, the naira appreciated to N455 to a dollar on Wednesday, May 27, 2020, the first working day of the week after the 2-day sallah break.

This shows a gain of N5 when compared to the N460 to a dollar that it exchanged yesterday. The local currency was also stable against the Pound Sterling at N545.

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In a related development, the naira showed signs of continued stability at the Investors and Exporters (I&E) window as it was still sold at N385.94 to a dollar, the rate it closed with on Friday last week.

A further look into the FMDQ shows that there was improved liquidity at the I&E window, with the daily turnover being $31.38 million as against the $29.38 million that was recorded on Friday, the last working day before the public holidays.

The positive performance of the naira at the parallel market and the stability witnessed at the Investors and Exporters window can be attributed to improved liquidity in the foreign exchange market, which had been promised by the CBN Governor, Godwin Emefiele.

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Just a few days ago, the Chairman of Bureau De Change Operators (ABCON), had announced the resumption of dollar sales to the BDCs. This is to help check the activities of foreign currency speculators and make dollars easily accessible to end-users, no matter where they are.

The resumption of dollar sales by the BDCs is also being done in anticipation of the full reopening of the economy, and the resumption of flight operations at our various airports.

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