Naira Strengthens, Gains 9.7% Against American Dollar At Parallel Market

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The naira firmed up at the parallel market, Tuesday, gaining 9.65 per cent against the U.S dollar.

The naira, which had weakened to a low N480 at the black market in recent months, firmed up from its previous trade of N477 on Friday.

According to currency dealers, the planned resumption of forex sales by the Central Bank of Nigeria (CBN) to operators of Bureau De Change (BDC) could have triggered the market reaction. The development is expected to bolster dollar liquidity in the market.

On Monday, traders at the black market refused to show quotes as panic set in following the central bank’s announcement about retail currency operators last Thursday.

Meanwhile, at the official market, the naira was quoted at N381, its rating since July. It traded at N386.03/$ on the over-the-counter spot market.

For months, dollar scarcity has stifled the local currency market as the coronavirus pandemic has led to an oil price crash, slashing of government revenues, weakening the naira amid huge economic consequences.

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